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According to analysts, Google advertising should be relatively better than others.
Angela Weiss / AFP via Getty Images
As consumer spending slows, fuel costs rise and the chances of a recession remain high,
JP Morgan
Technology analysts moved to lower their financial expectations for all companies in their coverage on Wednesday.
Six analysts, including Doug Anmuth, highlighted companies such as e.g.
Alphabet
(point: GOOGL) among 26 others in their note, noting the limited ability of technology companies to offset the broader macroeconomic trends now in relation to the 2008 financial crisis. Although he still believes
Amazon
(AMZN),
Reservations (BKNG)
and
Uber (UBER)
are the best choices even in a recession, given the dynamics of the company, such as their leadership positions.
Digital accounted for 12% of total advertising spending during the Great Depression, up from 67% in 2021, Anmuth explained. This leaves Meta (META), Snapchat (SNAP), Alphabet and others exposed due to the reduction in brand advertising costs.
The report led analysts to lower revenue estimates for the third quarter
Snapchat
by 4%, 6% for the fourth quarter and 7% for 2023. The price target for the entire year 2022 at the social media company is now $ 24 versus $ 26 earlier. The stock fell 0.2% to $ 13.71 on Wednesday.
For
Google
,
Anmuth recognizes that its advertising should last relatively longer than others, as its search is more socially viable and not subject to additional pressures from Apple’s privacy changes, but any slowdown in brand advertising spending will continue. she’s difficult. Analysts have shrunk
Alphabet
‘small
forecast of gross income by 1% for the second quarter and 2% for the second half of the year. The company lowered its price target for the company to $ 2,800 from $ 3,200. The stock rose 0.4% to $ 2,248.01 in the early hours of Wednesday.
Anmuth reduced its revenue estimate for
Post
by 6% for 2022.
Post
“It has more than 10 million advertisers.” The price target was reduced to $ 225 from $ 275 earlier. Meta shares fell 2.3% to $ 164.39 on Wednesday.
While travel remains strong so far in 2022, Anmuth reminded investors that overall travel spending growth has historically been linked to inflation and macroeconomic upheavals, which could begin to burden travel bookings after the summer season. For all travel companies such as
Airbnb
(ABNB),
Expedia
(EXPE) and others, its revenue forecasts for 2023 fell by 2% to 4%.
Amazon
,
Reservation
and
Uber
It also suffered a drop in ratings, but had some favorable indications that these stocks are its best choices. These included Amazon’s Prime offering and lead in the cloud market, Booking’s strong management team and Uber’s leadership in the mobility share market. Rates all three tech giants in Overweight.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
