Advertising is so back.

After a brutal 2022, when brands reeled in spending to cope with inflation, and a 2023 defined by layoffs and cost cuts, the top digital advertising companies have started growing again at a healthy clip.

Meta, Snap and Google all reported first-quarter results this week, with revenue growth that exceeded analysts estimates and at rates not seen in at least two years. Their financials were primarily driven by improvements across their ad businesses.

The companies entered earnings season in a favorable position in that their numbers would be comparable to historically weak periods. But investors and analysts were cautious in their expectations, given the political and economic instability in various markets across the globe and the ongoing challenges posed by high consumer prices.

Meta, which was the first in the group to report results, put some fears to rest on Wednesday, showing a 27% jump in first-quarter revenue to $36.5 billion. For the Facebook parent, it was the strongest rate of expansion since 2021.

“When Meta was in its dark days two years ago, the company knew what they had to do to get back on track,” analysts at Bernstein wrote in a note after the earnings report. “To their credit, Meta defended the core.”

That dark era was defined by the combination of macroeconomic challenges and Apple’s iOS privacy change, which made it harder for social media companies to target users with ads. Meta lost two-thirds of its value in 2022 and was forced to dramatically cut headcount.

Meta responded by rebuilding its ad system, with the help of hefty investments in artificial intelligence, so it could deliver value to brands despite the roadblock imposed by Apple. The stock almost tripled in 2023.

While the company’s first-quarter results beat estimates across the board, the shares tanked on Thursday after CEO Mark Zuckerberg focused his post-earnings commentary on the many ways Meta is spending money in areas outside of advertising, notably the metaverse.

“We’ve historically seen a lot of volatility in our stock during this phase of our product playbook where we’re investing in scaling a new product but aren’t yet monetizing it,” Zuckerberg said on the earnings call late Wednesday.

The Bernstein analysts, who recommend buying the shares, said Meta’s ad revenues were led by strength in online commerce, gaming, entertainment and media, and that China-based ad demand “remained strong.” Meta has benefited from a surge in spending from Chinese discount retailers like Temu and Shein.

“Without sounding overly religious, you either believe in Zuck or you don’t, and we do,” the analysts wrote.

Alphabet followed on Thursday, reporting ad revenue for the first quarter of $61.66 billion, up 13% from the year prior, with YouTube ad revenue jumping 21% to $8.09 billion. The company as a whole grew 15%, a rate last seen in 2022, and the stock shot up 10% on Friday, the sharpest rally since 2015.

During the quarterly call with investors, Alphabet finance chief Ruth Porat said the company is “very pleased” with the momentum of its ad businesses.

Analysts at Citi wrote in a note on Friday that the broader advertising environment is “clearly strengthening,” pointing to accelerating growth within Google Search and YouTube.

“We emerge from Q1 results incrementally positive on shares of Alphabet,” the analysts wrote, maintaining their buy recommendation.

Snap shares rocketed 28% on Friday after the company reported a 21% increase in revenue to $1.19 billion, the strongest growth in two years. In each of Snap’s past six quarters, sales either grew in single digits or declined.

The company said it’s seeing accelerating demand for its ad platform and benefiting from an improved operating environment, according to its investor letter.

Deutsche Bank analysts wrote in a report on Friday that Snap delivered a “much-needed” beat, and that its ad stack is back on track. The analysts, who have a buy rating on the stock, said investors appear “most encouraged by the ad platform investments, which are showing increasing promise.”

Despite the rally, Snap shares are still down 14% for the year.

Investors will get a clearer picture of the digital ad market next week, with Pinterest reporting on Tuesday alongside Amazon, which has emerged as a giant in online ads. Reddit will follow on May 7, reporting earnings for the first time since the social media company’s initial public offering in March.

Snap shares surged 28% on Friday after the company surprised Wall Street by showing a profit and reported sales and user numbers that exceeded analysts’ estimates.

The stock climbed $3.15 to close at $14.55, its biggest percentage gain since 2022. Even after the rally, the stock is down 14% for the year due to a 31% plunge in February.

Revenue in the first quarter increased 21% to $1.19 billion from $989 million a year earlier, topping analysts’ estimates for sales of $1.12 billion, according to LSEG.

The company reported adjusted earnings per share of 3 cents, while analysts were expecting a 5-cent loss. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $46 million, compared to analysts’ expectations for a loss of $68 million.

Snap said adjusted EBITDA “exceeded our expectations” and was primarily driven by operating expense discipline, as well as accelerating revenue growth.

Snap has been working to rebuild its advertising business after the digital ad market stumbled in 2022. Its investments are starting to pay off. The company said in its investor letter that revenue growth was primarily driven by improvements in the advertising platform, as well as demand for its direct-response advertising solutions. 

“I think more broadly, we saw a much more robust brand environment, which played out in all of our regions in Q1,” CFO Derek Andersen said on the earnings call.

User growth was also better than expected. Snap reported 422 million daily active users (DAUs) in the first quarter, up 10% year over year and topping the average analyst estimate of 420 million, according to StreetAccount.

In February, Snap announced it would lay off 10% of its global workforce, or around 500 employees. The company said Thursday that headcount and personnel costs will “grow modestly” through the rest of the year. 

Advertising revenue came in at $1.11 billion in the first quarter. Snap’s “Other Revenue” category, which is primarily driven by Snapchat+ subscribers, reached $87 million, an increase of 194% year over year. Snap reported more than 9 million Snapchat+ subscribers for the period.

Though Snap’s growth was its fastest since March 2022, it still fell behind that of Meta, which reported 27% growth in its better-than-expected first-quarter results on Wednesday. Meta shares plunged anyway after the company issued a light forecast and spooked investors with talk of its long-term investments.

For the second quarter, Snap expects to report revenue between $1.23 billion and $1.26 billion, up from the $1.22 billion expected by analysts, according to StreetAccount.

WATCH: Watch CNBC’s full interview with Snap CEO Evan Spiegel

Federal authorities say a “critical safety gap” in Tesla‘s Autopilot system contributed to at least 467 collisions, 13 resulting in fatalities and “many others” resulting in serious injuries.

The findings come from a National Highway Traffic Safety Administration analysis of 956 crashes in which Tesla Autopilot was thought to have been in use. The results of the nearly three-year investigation were published Friday.

Tesla’s Autopilot design has “led to foreseeable misuse and avoidable crashes,” the NHTSA report said. The system did not “sufficiently ensure driver attention and appropriate use.”

The agency also said it was opening a new probe into the effectiveness of a software update Tesla previously issued as part of a recall in December. That update was meant to fix Autopilot defects that NHTSA identified as part of this same investigation.

The voluntary recall via an over-the-air software update covered 2 million Tesla vehicles in the U.S., and was supposed to specifically improve driver monitoring systems in Teslas equipped with Autopilot.

NHTSA suggested in its report Friday that the software update was probably inadequate, since more crashes linked to Autopilot continue to be reported.

In one recent example, a Tesla driver in Snohomish County, Washington, struck and killed a motorcyclist on April 19, according to records obtained by CNBC and NBC News. The driver told police he was using Autopilot at the time of the collision.

The NHTSA findings are the most recent in a series of regulator and watchdog reports that have questioned the safety of Tesla’s Autopilot technology, which the company has promoted as a key differentiator from other car companies.

On its website, Tesla says Autopilot is designed to reduce driver “workload” through advanced cruise control and automatic steering technology.

Tesla has not issued a response to Friday’s NHTSA report and did not respond to a request for comment sent to Tesla’s press inbox, investor relations team and to the company’s vice president of vehicle engineering, Lars Moravy.

Earlier this month, Tesla settled a lawsuit from the family of Walter Huang, an Apple engineer and father of two, who died in a crash when his Tesla Model X with Autopilot features switched on hit a highway barrier. Tesla has sought to seal from public view the terms of the settlement.

In the face of these events, Tesla and CEO Elon Musk signaled this week that they are betting the company’s future on autonomous driving.

“If somebody doesn’t believe Tesla’s going to solve autonomy, I think they should not be an investor in the company,” Musk said on Tesla’s earnings call Tuesday. He added, “We will, and we are.”

Musk has for years promised customers and shareholders that Tesla would be able to turn its existing cars into self-driving vehicles with a software update. However, the company offers only driver assistance systems and has not produced self-driving vehicles to date.

He has also made safety claims about Tesla’s driver assistance systems without allowing third-party review of the company’s data.

For example, in 2021, Elon Musk claimed in a post on social media, “Tesla with Autopilot engaged now approaching 10 times lower chance of accident than average vehicle.”

Philip Koopman, an automotive safety researcher and Carnegie Mellon University associate professor of computer engineering, said he views Tesla’s marketing and claims as “autonowashing.” He also said in response to NHTSA’s report that he hopes Tesla will take the agency’s concerns seriously moving forward.

“People are dying due to misplaced confidence in Tesla Autopilot capabilities. Even simple steps could improve safety,” Koopman said. “Tesla could automatically restrict Autopilot use to intended roads based on map data already in the vehicle. Tesla could improve monitoring so drivers can’t routinely become absorbed in their cellphones while Autopilot is in use.”

— NBC’s Robert Wile contributed to this report.