Facebook, Twitter and digital ad stocks drop sharply after Snap earnings
On the iPhone’s screen, you can see the logos for Instagram, Facebook and Twitter.
DeFodi Images via Getty Images| DeFodi Images via Getty Images
The shares of Facebook TwitterAfter-hours trading is down sharply for other digital advertising and social media companies. SnapAccording to Snap, revenue forecasts for the third quarter were not met due to Apple privacy changes that disrupted their advertising business. Snap said that short-term disruptions to supply chains were hindering advertising spend as companies are not keen on generating demand for products not in stock.
Facebook and Twitter lost more than 6 and 5% after hours respectively, while Pinterest saw a slight drop of 2%. (Pinterest lost more than 2% in regular trading after the announcement. reports on WednesdayThis PayPalWas considering an acquisition. Facebook and Twitter will report next week’s earnings.
Long-standing technology companies are well known. raised concerns over the privacy change known as ATT or App Tracking TransparencyThis pop-up asks users if they would like to be tracked. Advertisers will have a harder time tracking the effectiveness of digital advertisements, critics say.
Snap CEO Evan Spiegel explained that, “While we were anticipating some level of disruption in business, the new Apple-provided measuring solution didn’t scale as we had anticipated, which made it more difficult to measure and manage our advertising partners’ ad campaigns for iOS,” he said.
Spiegel warned, “short-term appetite for generating additional customer demand via advertising” was reduced by supply chain disruptions and labor shortages. Snap also provided weaker guidance than analysts expected.