KeyBanc flags Ad spending slowdown, cuts target on major digital names

Investing.com -- KeyBanc Capital Markets cut price targets across a group of digital advertising and streaming stocks citing worsening ad agency checks and increased macro uncertainty.

The firm reduced revenue forecasts and price targets for eight names, including Overweight-rated Alphabet (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), Netflix (NASDAQ: NFLX), Pinterest (NYSE: PINS), Spotify (NYSE: SPOT), and The Trade Desk (NASDAQ: TTD).

Trump tariffs have induced the investments pause until, as companies wait to see the impact on supply chains and consumers

Agency feedback now points to ad budget growth of just 3–5%, down from earlier expectations of 6–7%.

Checks have notably deteriorated, with agencies citing spending uncertainty among auto, CPG, and retail verticals, analysts wrote.

KeyBanc said the environment has entered a “pause” phase as companies reassess the impact of supply chain and consumer trends.

New price targets include $185 for Google, which was earlier $202, $645 for Meta, cut down from $710, and $1,000 for Netflix down by $100.

Meta remains KeyBanc’s top ad pick, supported by ongoing AI-driven product improvements, while Google is seen as more limited in ad load expansion but better positioned for cost controls.

KeyBanc also noted a preference for subscription-based models, calling Netflix and Spotify more defensive plays in a weaker ad market due to recurring revenue and improving monetization.

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