A strong advertising market may be starting to feel the pressure from geopolitical risks erupting aboard and a higher-for-longer interest rate environment. The concerns around advertising are typical for an industry often tied to consumer spending, and one that's suffered from Apple iOS privacy changes that reduced the ability to target specific audiences . But comments from some major technology players last week led to increasing questions that some investors have struggled to shake off.
mountain Meta shares in recent trading sessions That concern added to declines in other ad-focused technology names, with Alphabet dropping nearly 10%. Snap and Meta finished last week down 1.5% and 3.9%, while ad-tech players such as the Trade Desk slumped about 10%. To be sure, some analysts and investors say fears of a hit to advertising may be overblown – especially if the Mideast crisis doesn't escalate. And companies are still showing signs of advertising strength. Ad revenue rose 9.
mountain Alphabet shares over the last month "The setup is that investors aren't buying the strength in the ad market," said Deepwater Asset Management's Gene Munster. "There is reason for concern." Those fears may be priced in for investors such as Munster with a longer-term time horizon, but sufficient enough to contribute to some shorter term volatility and potential softness if consumer spending eases.