tl;dr
Alphabet (GOOG), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN) were in focus on Thursday as Wedbush Securities said a recent survey showed U.S. ad spending has increased "significantly" in 2024 compared to the end of 2023. "In 1Q24, 48% of marketers grew their digital advertising spend by ...
Alphabet (GOOG), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN) were in focus on Thursday as Wedbush Securities said a recent survey showed U.S. ad spending has increased "significantly" in 2024 compared to the end of 2023. "In 1Q24, 48% of marketers grew their digital advertising spend by at least 10% Y/Y, with ~12% reporting growth of over 20% Y/Y," analysts led by Scott Devitt wrote in a note. "Advertiser sentiment is improving with expectations for stronger growth in 2024 relative to our prior survey work," the analysts added. Additional takeaways from the poll, which surveyed 200 U.S. based marketers across ad agencies and in-house advertisers, include: 61% percent of marketers said they would increase spending by 10% or more in 2024, up from 37% in the fourth-quarter of 2023. 11% of markets said they would increase their spending by 20% or more, up from 6%. Marketers who expect their budgets to decline year-over-year fell to 2%, down from 6%. The investment firm said the survey left them feeling "constructive" on Meta for two reasons: spending intent in the second-quarter and for all of 2024 are "notably strong" and above growth rates seen in the first quarter; by category, results were the most positive for digital advertising on social media, as roughly 52% of advertisers said they planned to increase social spending by more than 10% in 2024, up from 42% in the previous survey. Alphabet is seeing "healthy" feedback from advertisers for search and "particularly strong" for YouTube, the investment firm said. Approximately 59% advertisers said they were getting better return on spending in Google search over the past three to six months. Conversely, 56% of advertisers saw improvements in return on spending from YouTube over the same time frame. Pinterest (NYSE:PINS) may see a "modest acceleration" in growth in the coming quarters, the analysts said, citing the survey. "Approximately 8% of the advertisers we reached that actively advertise on Pinterest increased their spending on the platform by at least 20% Y/Y in 1Q, while 15% plan to increase spending by over 20% for the full year; this supports expectations for accelerating growth as the year progresses." Amazon is viewed especially favorable by advertisers, as 56% of respondents said they would increase spending 10% or more in the first-quarter and 25% said they increased their ad spending on the Andy Jassy-led company by 20% or more. "Notably, spending intent has improved for the full year relative to our prior survey work, as 95% of advertisers plan to raise Amazon ad budgets in 2024, up from 77% of marketers in our 4Q23 survey," the analysts wrote. "Our outlook is increasingly positive, as 22% of advertisers plan to increase ad spending on Amazon by over 20% for the full year."
More about Alphabet Inc Class C
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 1.936908222 trillion
P/E Ratio: 26.96
Dividend Yield: None
EPS: 5.8
52-Week High: 24.34
52-Week Low: 0.24
Average Volume: 307,393,987
Stock Price: $162.20
Change: 0.56
Change %: 0.135
More about Meta Platforms Inc.
Meta Platforms Inc. Summary:
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, PCs, virtual reality headsets, wearables and home devices around the world. The company is headquartered in Menlo Park, California.
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 1.268 trillion
Current Price: $33.45
Dividend Yield: 0%
52-Week Low: $14.87
52-Week High: $52.41
EPS: $0.29
Volume: 134,901,998
PE Ratio: 517.17
Beta: 2.002
Volatility: 0.247
More about Amazon.com Inc
Company: Amazon.com Inc
Industry: Trade & Services, Retail-Catalog & Mail-Order Houses
Market Cap: 1,894,765,560,000
Current Price: $3,222.90
Dividend Yield: 0.0%
EPS: $55.78
P/E Ratio: 57.47
Volume: 574,784,995
52-Week High: $3,552.25
52-Week Low: $2,478.55
Price to Sales: 4.69
More about Pinterest Inc
Pinterest Inc Summary
Pinterest, Inc. provides a visual discovery engine in the United States and internationally. The company is headquartered in San Francisco, California.
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 238.53B
Dividend Yield: None
Earnings per Share: -0.05
Price to Earnings Ratio: 4.528
Earnings Growth: -0.0117
Revenue: 305.51B
Stock Price: $43.21
Beta: 10.23
Volatility: 0.119
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