Jefferies Internet Advertising Earnings Preview

Jefferies analyst Brent Thill reiterated Buy ratings on Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: FB) while reiterating a Hold rating on Twitter (NYSE: TWTR) ahead of earnings.

Google: "Checks indicate relatively healthy fundamentals vs. other digital ad players, espec. due to strong YouTube and solid Search (both brand and DR). However, the overall tone was still muted, suggesting little upside."

Meta Platforms: "While we expect Q4 rev in-line to slightly above the street's +19% y/y growth, our checks indicate that there could be a more pronounced slowdown in Q1. We would not be surprised to see FB guide Q1 rev below the street's +15% y/y growth with headwinds coming from supply chain shortages, Omicron uncertainty, and ongoing privacy headwinds."

Twitter: "We believe Q4 could be a challenging quarter, particularly given the recent mgmt transition and subsequent reorganization that has happened over the last few months. Our biggest concern is around TWTR's ability to meet its 315M mDAU target by 2023, as the company has seen its mDAU growth decelerate into the mid-teens (from mid-30s in 2020)."

For an analyst ratings summary and ratings history on Alphabet click here. For more ratings news on Alphabet click here.

Shares of Alphabet closed at $2667.02 yesterday.

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