By Sheila Dang

(Reuters) – Digital platforms like Alphabet Inc and Meta Platforms Inc experienced an unprecedented year of revenue growth. Snap Inc (NYSE: Twitter Inc An analyst report published Thursday revealed that (NYSE:) is now facing a disturbing reality.

MoffettNathanson, a research firm, reduced its 2025 revenues estimates for the four companies by doubling their percentages.

The U.S. spent 38% more on digital advertising in 2021 than the year before. Alphabet, which is the biggest digital advertising platform worldwide, had a record $257 billion in revenue that year.

The report, which estimates for the first-time the possible impact on revenue in the coming years, despite the warnings from the companies about inflation, Ukraine war, and end to a COVID-induced boost to advertising, is not surprising.

In the report, Michael Nathanson (an analyst at MoffettNathanson) said that “After years and uber-bullishness”, he was truly worried about long-term growth of digital advertising.

Nathanson noted that the growth in advertising last year was partly due to an “unprecedented rise” in profitability for companies who saved money on expansions and office space, and were able to invest more on marketing.

The report shows that ecommerce’s share of retail sales is now at pre-pandemic levels. Corporate expenses could rise as employees return to the workplace, however.

It stated that online advertising will grow at 12.5% annually in the United States by 2025, down from 18.5%.