Written by Aniruddha Gosh and Nivedita Baliu

(Reuters). – Shares Snap Inc After the iPhone owner warned that Apple Inc (NASDAQ) would continue to take a severe hit, (NYSE::) plummeted on Friday.

Snap shares closed at $60.8, down almost 20% before the bell. This was a close to three month low. The shares of Google parent Alphabet, Facebook (NASDAQ) and Twitter (NYSE) fell between 2% to 4%.

Apple’s privacy update, released in June and July of this year, prohibits advertisers from tracking iPhone users without consent. Due to the fact that it is difficult to monitor and manage campaigns, advertisers spent less than anticipated.

Snap stock analysts have cut their target price by more than 10 to as low as $4, and even as high as $25. Many warned that the effects of Apple’s decision would continue into next year when Snap launches tools for attracting advertisers.

Doug Anmuth (an analyst at J.P. Morgan) stated in a note that Apple iOS ad change outcomes were worse than anyone expected.

Anmuth anticipates that Snap will feel the effects of the privacy change’s immediate consequences more than Alphabet, Facebook and Twitter. As a result, the brokerage expects that Snap’s fourth quarter revenues will drop by at least 2/3.

Snap in Santa Monica (California) said the major source of revenue is from the sale digital advertising. Snap claims that the issues were exacerbated by labor shortages and global supply chain disruptions. This caused advertisers to cut back their advertising budgets.

Mark Mahaney from Evercore ISI said that “all three of these problems are industry-wide issues and Snap-specific problems” and that they would be heard repeatedly throughout the Q3EPS season.