Tech’s strong ad sales are starting to crack from Trump’s trade war

The digital advertising market was sunny enough for investors in the last quarter, providing what could be a last hurra before an imminent economic storm of President Donald Trump’s onslaught.

Wall Street cheered the results of the first quarter of technological giants such as Goal and Alphabetwhich saw that the actions increased in strong income and profits that exceeded the expectations of the analysts.

The strong numbers of online advertising titans against economic concerns showed that companies were still willing to promote their assets and services to consumers on the Internet.

Amazon The flourishing online advertising unit also exceeded the estimates of analysts for the quarter. Advertising sales of the first quarter of the online retail giant increased approximately 19% year, which represents a faster growth rate than Meta and Google advertising sales, which were 16% and 9%, respectively.

Smaller social networks and online advertising companies such as Reddit” Break and Pinterest He published sales of the first quarter that exceeded the projections of Wall Street. And even advertising technology companies such as Burst and The trade table He published strong quarterly gains.

Applovin shares increased almost 15% on Wednesday after the mobile advertising technology supplier exceeded analysts’ estimates and the sale would sell their mobile game business to triple -edot studios.

The actions of the trade table increased 18% on Friday, only one day after the advertising technology firm reported profits of the first quarter they won in the upper and lower lines.

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

Meta’s financial director, Susan Li, said last week that “Electronic Commerce exporters based in Asia” are spending less on digital advertising due to the cessation of Minimis’s commercial escape that benefited Retail and heavy speakers from Facebook like Temu and Shein.

“It’s very early, difficult to know how things will come out during the quarter, and certainly more difficult to know for the rest of the year,” Li said a call with analysts.

Alphabet and Pinterest executives shared similar feelings on sales of more slow and specific ads in Asia and the broader macroconomic uncertainty that is directed to the rest of the year. Snap so far as to bring its guide to the second quarter about the unpredictable economy that reduces corporate advertising budgets for the rest of the year.

Jeff Green, CEO of the Table of Commerce, also pointed out the challenging economy on Thursday, saying that marketing specialists face an “important moment” while working “in the midst of greater volatility of the macro to begin the year.”

“The good news is that Q1 was really strong, and the fourth quarter of last year was quite good,” said Sameer Samana, head of global actions and real assets for Wells Fargo Investment Institute.

But with companies of a variety of sectors that lose or even suspend their 2025 sales guide, as in the case of automatic giants such as Ford motor and Tima manufacturer MateSamana believes that good times are probably coming to an end.

“What he tells me is that we better enjoy this rally, we better enjoy these good numbers,” Samana said. “This will be as good as next year.”

In a sinister sign for social networks and online advertising companies, retail and consumer products companies as Procter and bet I have warned or weaving sales in the middle of the turbulent economy.

Jasmine Enberg, Vice President and Main Analyst of Emarketer, said that companies in these sectors generate “approximately half or all social ads in the United States”, and a decrease in their advertising expenditure “will have a domino effect on the social advertising market.”

Enberg believes that a possible slowdown in advertising spending will damage more the closer technology platforms than its largest rivals.

“I think that what we see is what we tend to see in times of economic uncertainty, that advertisers seek refuge in larger platforms that provide them with a consistent scale and ROI,” said Andberg.

But even technological giants as a goal can feel some financial pain, explained Greg Silverman, worldwide director of brand economy of the Interbrand consulting firm.

Although other retailers may decide to run Facebook ads now that China’s links such as Temu are going back, it is unlikely that these promotional campaigns are so lucrative for those colleagues, said Silverman.

Themu was willing to spend large in Facebook ads because he previously benefited from Minimis’s commercial escape, Silverman said, and it is unlikely that any American retailer does the same, literally with a cost and high rates.

“The return of the advertising spending that Temu was receiving on Facebook will be difficult for any other person recreation,” said Silverman.

For Samana from Wells Fargo, the current economic uncertainty dates back to politics and commercial rates and their resulting effects through markets.

“We started the year with very low levels in the rates,” Samana said. “The rates at the end of this will be high, and they will be significant, and that is not good for the markets. I think that is the only point that matters.”

Correction: APLAVIN said he would sell his mobile games business to triple studios. A previous version lost the movement.