Snap Stock Plunges As Digital Advertising Ecosystem Takes Hit From Apple

Snap stock fell on Friday as shares of Facebook, Twitter (TWTR), Alphabet’s (GOOGL) Google, Pinterest (PINS), Trade Desk (TTD), and others in the digital advertising ecosystem fell as a result of the company’s September-quarter revenue miss and guidance.

After the market closed on Thursday, Snap (SNAP) released its third-quarter earnings. The revenue shortfall was attributed to changes in Apple’s (AAPL) consumer privacy regulations, which hampered targeted advertising. Consumer activity on the internet will be more difficult to follow as a result of the changes.

In a note to clients, Brian White, an analyst at Monness, Crespi, Hardt & Co., wrote, “Snap delivered spooky Q3 results and issued a scarier Q4 prognosis.” “Apple was singled out as a contributing factor, along with supply chain delays and labor constraints at advertising.”

On the stock market today, Snap shares fell 26.6 percent to close at 55.14. The shares of Facebook have dropped 5.1 percent to 324.61. The shares of Twitter fell 4.8 percent to 62.24. Google’s stock dropped 3% to 2,751.33.

How Apple Might Have Hurt Snap Stock

The most vocal critic of Apple’s privacy restrictions has been Facebook (FB), which announces earnings on Oct. 25. They were implemented as part of an iOS software update earlier this year.

In addition to Apple’s privacy reforms, global supply chain concerns are now projected to have an impact on digital marketers like Snap stock in the fourth quarter and beyond. This is because if online shops are unable to meet holiday season demand due to product shortages, they will advertise less.

On October 26th, Google will release its earnings. Despite reports that Pinterest could be acquired by PayPal Holdings, the stock dropped more than 5% to 58.06. (PYPL). The stock of Trade Desk dropped 8.8% to 73.96.

Meanwhile, Apple’s stock fell a smidgeon to about 148.69.

How Apple Might Have Hurt Snap Stock

Snap announced adjusted earnings of 17 cents per share on $1.07 billion in revenue. Snap was expected to report adjusted earnings of 8 cents per share on $1.1 billion in revenue, according to analysts.

Snap, on the other hand, expects revenue of $1.16 billion to $1.2 billion in the fourth quarter. This was around 14% less than forecast expectations of $1.36 billion.

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