Businesses that rely on digital advertising slumped in after-market operations after Snap Inc. reported its slowest quarterly sales growth on record.
Companies that rely on digital advertising slumped in after-market trading Thursday, after Snap Inc. reported its slowest quarterly sales growth on record.
Pinterest Inc. led the declines with a drop of as much as 9.4% and Meta Platforms fell 5.2% after Snapchat’s parent said third quarter sales were up just 6% adding that changes in platform politics, macroeconomic hurdles, and increased competition led to a decline in advertising spending.
Trade Desk Inc. fell 5.9% and Roku Inc. fell 3.6%, while Google’s Alphabet Inc. lost about 3%. Twitter Inc., which is being acquired by Elon Musk, fell 0.3%.
Social media platforms like Snapchat, Facebook and Instagram have had to get around privacy rules that Apple Inc. introduced last year that have made it harder to serve ads to customers based on their online activity.
Snap’s quarterly results were the first from big ad-reliant internet companies, setting the stage for what investors can expect when bigger players like Alphabet and Meta Platforms report next week. The stock is down 77% this year through Thursday’s close. It has gone from being valued at more than $100 billion in market capitalization last year to about $18 billion.