SNAP - Morgan Stanley trims Internet ad estimates on Europe uncertainty

Morgan Stanley has given a mild haircut to price targets for some advertising-centric technology names, pulling back on estimates amid the macro uncertainty of the geopolitical situations. "The winds of macro uncertainty continue to swirl around the advertising markets ... in particular within Europe," analyst Brian Nowak says. That follows key companies pointing to some European weakness in the ad markets. Europe plays a variable role in tech giants' revenues, the firm notes; the continent makes up anywhere from 8% of revenue (at Pinterest (PINS -0.2%)) to 34% (at Meta Platforms (FB +1.9%)). And softness there could be coming from not only branded advertisers pausing spend to stay away from negative content, but also incremental weakness from the European consumer. "Further, we also estimate Russia alone makes up ~1-2% of ad revenue for the ad platforms (with the largest players like GOOGL/FB toward the higher end)," Nowak says, "and we

For further details see:

Morgan Stanley trims Internet ad estimates on Europe uncertainty