DALLAS: After unprecedented revenue growth last year, digital platforms including Alphabet Inc, Meta Platforms Inc, Snap Inc and Twitter Inc now face a sobering reality as pandemic-driven advertising trends dissipate, according to an analyst report on Thursday.

Research firm MoffettNathanson cut its 2025 revenue estimates for each of the four companies by double-digit percentages.

US digital ad spending surged 38% in 2021 over the previous year. Alphabet, the largest digital advertising platform in the world, posted record revenue of $257 billion that year.

While the companies have warned of pressure from inflation, the Ukraine war and the end of a COVID-induced lift to advertising, the report estimates for the first time the potential impact to revenue over the next few years.

“After years of uber-bullishness, we are truly concerned about longer-term growth in digital advertising,” wrote Michael Nathanson, an analyst at MoffettNathanson, in the report.