Business
Results from Alphabet and Snap lift shares of online ad sellers
Global Banking and Finance Review
Company
(Reuters) – Online ad sellers added over $100 billion
(Reuters) – Online ad sellers added over $100 billion stock market value late on Tuesday after upbeat quarterly results from Alphabet, Reddit and Snap lifted investor optimism ahead of reports from Amazon and Meta Platforms.
Alphabet’s stock rallied 4% in extended trade after it topped quarterly revenue expectations, helped by steady growth in its digital advertising business and an AI-driven jump in demand for its cloud services.
Meta Platforms and Amazon, both rivals of Alphabet in advertising and AI, each gained over 1% following the Google owner’s report. Meta provides its results on Wednesday and Amazon reports on Thursday.
Snap, a smaller player in online ads, beat Wall Street expectations for both quarterly revenue and user growth, sending its stock 7% higher. Struggling with competition from TikTok and other heavyweight rivals, Snap’s stock has tumbled over 30% in 2024.
Reddit surged 20% in extended trade after forecasting quarterly revenue above Wall Street estimates, helped by its AI content licensing deals. That stoked optimism that more advertisers are turning to the platform following its Wall Street debut in March.
(Reporting by Noel Randewich; Editing by Cynthia Osterman)
Digital advertising refers to the use of the internet and online platforms to promote products or services. It includes various formats such as display ads, social media ads, and search engine marketing.
The stock market is a collection of markets where shares of publicly traded companies are bought and sold. It serves as a platform for companies to raise capital and for investors to trade shares.
Investor optimism refers to a positive outlook among investors regarding the future performance of the market or specific assets. It can lead to increased buying activity and higher stock prices.
Quarterly revenue is the total income generated by a company during a specific three-month period. It is a key indicator of a company's financial performance and is reported in quarterly earnings.
User growth refers to the increase in the number of users or customers of a service or product over a specific period. It is an important metric for assessing the popularity and success of a business.
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