Ad Revenue models are predicated upon the type of discretionary spend that gets hit during economic soft patches.
- Twitter missed earlier today (the proposed Musk transaction and macro softness were the primary contributors in our view).
- SNAP also came in weak and pulled guidance.
- As we wrote earlier this month, Ad Revs, Consulting Revs and discretionary deals tend to get pushed in a soft macro environment. 2022 Revenue and EPS estimates need to come in for many Technology companies – not just the 2023 estimates the talking heads on Bloomberg and CNBC cackle about.