The strong advertising sales of Tech begin to come from Trump's trade war

The digital advertising market was sunny enough for investors in the past quarter to offer a last hurray before a emerging economic storm of the tariff of President Donald Trump falls.

Wall Street cheered the results of the first quarter of tech giants such as anniversary Meta And alphabetin which both stocks increase strong income and profits that exceed the analyst expectations.

In view of economic concerns, the strong figures in the online advertising titans showed that companies were still willing to promote their goods and services for consumers throughout the Internet.

Amazon The burgeoning online advertising unit also led the analyst's estimates for the quarter. The sale of online individual giants in the first quarter rose by 19% compared to the previous year and corresponds to a faster growth rate as a meta and Google's advertising sales of 16% and 9%.

Smaller social media and online advertising companies like RedditPresent Snapping And Pinterest Posted sales in the first quarter in which the Wall Street projections were stopped. And even like advertising technology companies Applovine And The trading switch Strong quarterly profits posted.

Applovin shares rose by almost 15%on Wednesday, after the provider of mobile display technology had exceeded the analysts' estimates and explained that he would sell his mobile gaming business with tripledot studios.

The shares of the Trade Desk rose by 18%on Friday, only one day after the ad-tech company defeated profits in the top and underside in the first quarter.

However, the celebrations stopped when it was time for managers to discuss the rest of the year.

Susan Li, Chief Financial Officer from Meta, said last week that “based e-commerce exporters in Asia” spending less for digital advertising due to the setting of the DE-Minimis trading gap, which benefited retail and heavy Facebook editions such as Temu and Shein.

“It is very early to know how things will work through the quarter, and certainly more difficult to know that this for the rest of the year,” said Li during a call with analysts.

Managers of Alphabet and Pinterest shared similar feelings about slower, Asian-specific advertising sales and wider macroeconomic uncertainty in the rest of the year. Snap went so far to obtain his instructions for the unpredictable economy in the second quarter, which potentially shrink to the rest of the year.

Jeff Green, CEO des Trade Desk, also noticed the challenging economy on Thursday and said that marketers are exposed to an “important time” because they “in the middle of an increased macrovolatility to start the year”.

“The good news is that the first quarter was very strong and that the fourth quarter of last year was damn good,” said Sameer Samana, head of global shares and real assets for the Wells Fargo Investment Institute.

But lowers with companies from a variety of sectors or even their sales advice from 2025, as in the case of auto -giant such as Ford engine and toymaker MattSamana believes that the good times will probably come to an end.

“What it tells me is that we enjoy this rally better, we enjoy these good numbers better,” said Samana. “It will be about as good as in the coming year.”

In a threatening sign for social media and online advertising companies, retail and consumer goods companies such as Procter & Gamble have warned to weaken sales in the middle of the turbulent economy.

Jasmine Enberg, Vice President and main analyst at EMARKETER, said that companies in these sectors “create about half of all social ads in the USA” and a decline in their advertising expenses “will have a wave effect on the social advertising market”.

Enberg believes that a possible slowdown of advertising spending will damage smaller tech platforms more than its larger competitors.

“I think what we probably see is what we tend to do in times of economic uncertainty, namely that advertisers are looking for refuge in larger platforms that offer them scaling and consistent ROI,” said Enberg.

But even tech giants like Meta may feel financial pain, Greg Silverman, the global director of brand economy at the advisory company Interbrand.

Although other retailers may decide to lead Facebook ads because retailers like Temu resign, these advertising campaigns are probably not so lucrative for these companies, said Silverman.

Temu was ready to spend a lot for Facebook ads, since it previously benefited from the de -Minimis trade gap, said Silverman, and it is unlikely that a US retailer will do the same, especially with a rickety supply chain and high tariffs, which may increase the costs of their goods.

“The return of the advertising editions that Temu got on Facebook will be difficult for everyone else to build,” said Silverman.

For the Samana of Wells Fargo, the current economic uncertainty can be attributed to trade policy and tariffs and their following effects in the markets.

“We started the year with very low tariffs,” said Samana. “The tariffs at the end will be higher and they will be sensible, and that is simply not good for markets. I think that's the only point that counts.”

REGARD: There is growth positive guidelines on the horizon.