Despite a focus on AI spending, online advertising is a major contributor to Big Tech's growth.

Strong Growth in Digital Advertising: Major tech companies like Meta, Amazon, Alphabet, and Microsoft reported significant increases in their digital advertising revenues, with Meta leading at a 26% year-over-year growth, indicating resilience in the ad market despite economic uncertainties.

AI Investments and Economic Concerns: Despite concerns about economic instability, these companies are not reducing their AI spending, collectively expecting over $380 billion in capital expenditures this year, although Meta's stock faced a decline due to uncertainties about the returns on its AI investments.

Shifts in Advertising Budgets: Analysts suggest that companies may be reallocating their advertising budgets from traditional media to digital platforms, as evidenced by Reddit's impressive 68% sales growth, highlighting a broader trend in the advertising landscape.

Future Outlook and Consumer Spending: With the holiday season approaching, there are concerns about how economic factors might affect consumer spending and corporate marketing campaigns, making upcoming sales figures, particularly during Black Friday, a critical indicator for the advertising market.