Danielle Kaye and Nivedita Baul

(Reuters) – The holiday season was a present for Alphabet Inc (NASDAQ:) Inc, according to quarterly results. Next: Meta Platforms Inc, owner of Facebook (NASDAQ)

Alphabet’s web advertising, cloud computing, and hardware businesses enabled the Google owner to beat Wall Street expectations for the holiday quarter. Shares rose as high as 9% after-hours trading.

Brian Wieser (global president of business Intelligence at GroupM), said Alphabet results are proof that advertising is strong despite Apple Inc’s recent changes that prohibit advertisers from collecting data on iPhone or iPad users without consent. This has been an issue for Meta and other social media platforms. Snap Inc (NYSE:).

Google didn’t notice any issues this quarter. This is in contrast to the last quarter when marketers were low on privacy and product changes, which led to sales losses.

Gene Munster from Loup Ventures, an investor firm, stated that the “it sets up nicely going into Meta Platform’s earnings” after the Wednesday market close.

Alphabet’s success drove a surge in internet advertising company shares. Trade Desk, Magnite Inc. PubMatic Inc, and other competitors that work with Google saw their shares rise in late-night trading on Tuesday.

Alphabet and Apple recently beat their revenue estimates amid fears that equipment and software makers will not be able to keep up with the gains they made during the pandemic. As inflation kicks in, stocks fell last month in an otherwise jittery stock market.

Paul McCarthy of Kisco Capital said, “When you take a look at the markets and see the large companies doing well, you can’t say that the economy is in trouble.”

Alphabet’s advertising revenue increased 32.5% to $61.2 million in the fourth quarter. This is 4 billion more than Wall Street goals, according to Refinitiv Data.

On Tuesday, Microchip (NASDAQ) and Advanced Micro Devices Inc (NASDAQ) posted solid results for the quarter just ended. AMD forecast 2022 revenue that was higher than anticipated, which drove AMD’s shares up 11% during after-hours trades.

However, further inflation is on the horizon for Sophie Lund-Yates equity analyst Hargreaves Lansdown (LON) cautioned that tech shares are unlikely to have experienced the worst of the suffering.