Piper Sandler Analyst Recommends Meta & Google Amid Market Volatility

Digital Ad Market Slowdown

• 📉 Recent checks indicate a weakening digital ad market that has been slowing since February.
• ⚠️ Consumer spending appears to be flagging, compounded by the impact of tariffs.
• 📌 This slowdown and uncertainty have led to estimate and target cuts for various companies.

Advertiser Behavior Amid Uncertainty

• 🗣️ When uncertainty rises, advertisers tend to pull back on spending, leading to more reserved budgets.
• 🚗 Large advertisers like auto companies are expected to face significant pressures.
• 📈 While there's a risk of overcorrection in the market, stock performance may simply outperform lowered expectations.

Piper Sandler's Recommendations

• 🎯 The firm favors scaled companies like Meta and Google during market adjustments.
• 📊 These companies are trading at historically low multiples, both generally and year-to-date.
• 🔑 Google Search and Meta Properties are specifically recommended as areas likely to see ring-fenced ad spend.