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　　Snap will start the third quarter earnings season for technology and social media companies. Investors expect modest revenue growth for most companies in the industry, and also compare that performance to a tough 2021, when Apple Inc's privacy overhauls begin to upend the advertising industry.

　　But some analysts say a U.S. recession is likely next year, so forecasts for financial conditions in 2023 are guesswork at best, while investors are wary of overinterpreting "signs of life" such as ad spending around the fall shopping season as a sign of future performance. Indicators are cautious.

　　In the period before this, factors such as record high inflation in the United States and geopolitical uncertainty brought about by the conflict between Russia and Ukraine have led to slashing marketing budgets by American companies. That hurt U.S. tech platforms, which rely on selling digital ads as their main source of revenue, and led them to cut costs to stay profitable.

　　"Overall, we believe the online advertising environment remains volatile, with volatility continuing on a weekly basis," JPMorgan analysts wrote in an Oct. 4 note to clients.

　　U.S. tech companies have taken steps to prepare for the worst by cutting costs, halting hiring, controlling employee perks, and focusing on profitable projects. That helped restore confidence on Wall Street in the short term, some analysts said.

　　U.S. social giant Snap is expected to report a 6 percent rise in revenue to $1.13 billion, according to IBES data from Refinitiv, one of the world’s largest providers of financial market data and infrastructure. That would be the slowest quarterly revenue growth since Snap went public.

　　Snapchat is usually the first company to report quarterly earnings and is a bellwether for the social media industry. Snap shares are down 77% this year.

　　The company said in August it would cut 20% of its workforce and cut loss-making projects as the U.S. economy deteriorated.

　　Alphabet's Google, the world's largest digital advertising platform by market share, is doing relatively well as brands demand Google search ads.

　　The company's wealth of advertising data and reliance on search ads has shielded it from the privacy changes Apple introduced on the iPhone last year. These changes make it harder for platforms and brands to collect user data for personalized ads.

　　Alphabet's ad revenue will rise 7.5% from last year, the fastest growth among big tech companies, according to Wall Street forecasts.

　　future challenges

　　Meta, on the other hand, has been affected by the changes, and investors will be watching the company's performance closely for evidence of increased user engagement from Facebook and Instagram, as well as more brands buying Reels' new features, analysts said.

　　Analysts on average expect Meta ad revenue to fall 4.5%, according to Refinitiv data, which would be the company's second straight quarter of declines.

　　Shares of Meta have fallen 60% this year amid fierce competition from short-video app TikTok and the company’s own expensive investments in building a metaverse and advertising. In addition, the effectiveness of the Metaverse and Ads has decreased due to changes in Apple's privacy policy.

　　"The company now called Meta is very different from what Facebook was a year ago," said Debra Williamson, principal analyst at research firm Insider Intelligence. "After a dismal second-quarter earnings report, we don't expect a third quarter either Any improvement. It could very well be worse."

　　Ads from big retailers promoting back-to-school and fall shopping are expected to drive growth on digital platform Pinterest, analysts at investment research firm Bernstein said in a report. Wall Street expects revenue to rise 5% in the quarter from a year earlier.

　　However, analysts at Credit Suisse said some advertisers are shifting ad revenue to larger platforms that are used by more people and have been shown to drive sales, which will weigh on Pinterest's revenue in the fourth quarter and next year. constitutes a risk.

　　Twitter Inc., which is working to close a deal for billionaire Elon Musk, has yet to announce a date for its third-quarter earnings.

　　Twitter's performance is unlikely to affect its stock price, but depends on the possibility of a deal with Musk. But analysts at Bernstein said third-quarter results could be affected by marketers' reduced spending on "brand advertising," which increases its visibility and is Twitter's main business.

　　Snap and Meta are better known for so-called performance ads, which are used to drive sales or website traffic.