How AI is boosting ad revenue

Artificial intelligence was a shot on the arm for digital advertising.

Meta And Alphabet Both reported sales and gains that defeated Wall Street’s expectations, but the power of digital advertising expenditures was remarkable.

Meta CEO Mark Zuckerberg said that during the gains, AI helps AI to “more efficiency and gains in our advertising system” and thus contributed to a 22% increase in the second quarter sales of the second quarter sales reaching $ 47.52 billion.

Susan Li, Meta Finance Chief, also told the analysts during a follow -up earning On July 30, the online advertising market has been recovered since April.

In April, Li, Asia -based online retailers, said that President Donald Trump had withdrawn digital advertising expenditures in the midst of wider macroeconomic uncertainty due to the tough tariffs of Trump and the closure of the minimum trade gap.

Li, in this quarter, with small, North American-based advertisers on the platform on the platform, asian-based e-commerce companies that increase digital advertising expenditures, he said.

“Usually we expect another quarter of healthy advertising demand, Li Li said about the advertising purchase.

Gil Luria, the head of the technology research in Davidson, is still a wider macroeconomic uncertainty, “Today, in general, digital advertising is going well well; this is just an extension of the fact that the consumer is still strong.”

“There is optimism where consumer expenditures will continue and therefore all the downward markets will continue.” He said.

“One of the things that your earnings taught us is that you could spend a lot of money on AI when your core job has granted good results, and especially when your basic business has benefited from the investments you have earned in AI,” META’s second quarter.

The ongoing jaw rate of artificial intelligence expenditures does not seem to slow down soon.

The Alphabet added extra 10 billion dollars to the 2025 capital expenditure forecast, now fixed to $ 85 billion, and the low end of capital expenditures for the year increased between 64 billion dollars and $ 72 billion instead of 66 billion to 72 billion dollars.

Investors did not show any signs of fear about the great AI expenditures of the commodity and the alphabet because the general sales of these companies continued to increase.

Apart from technology giants, Reddit The second quarter sales of 500 million dollars represented a 78% increase in the company, which helps to increase the company’s shares up to 20%.

“They rose like a kind of Phoenix and got some extraordinary results about Reddit, who saw that the stocks fell more than 15% in February after reporting the weaker user numbers than expected due to the change of Google search algorithm.” He said.

Reddit’s quarter of the box office records contrasts with peers of similar size Explode And PinterestBoth of them reported a warm three -month gain this week.

Snap’s second quarter sales grew only 9% compared to last year, and Wall Street missed its predictions about global average income per user, which said how much money the company earns from each user.

In an investor letter, Snap CEO Evan Spiegel said that Snap’s advertising platform, which contributed to Miss, is an update that damages the company’s “topline growth”.

On Wednesday, Snapchat parent added Reddit to his last list of competitors. 10-Q FILMING On Wednesday, a potential, developing competition.

Meanwhile, Pinterest shares fell over 10% on Thursday after reporting the second quarter earnings that missed earnings per share.

Pinterest Finance Chief Julia Brau Donnelly said to analysts during a call for earnings, as the company is still noticed in May, “and wider market uncertainty”.

Unlike Meta, Donnelli said, “Asian-based e-commerce retailers withdrew in the United States,” and emphasized how some advertisers are among the symptoms of global economic uncertainty.

“There are very little space for mistakes or wrong steps,” he said about the three -month earnings reports of small technology companies such as Enberg, Snap and Pinterest.

WRISTWATCH: Technology growth rates remain intact.