shares
Explode, Explode (Explode, Explode) It fell more than 40% on Tuesday and reached its lowest level since March 2020, right after the Covid-19 pandemic hit the United States.
company
Said in a regulatory filing That its bleak outlook was due to the fact that “the macroeconomic environment deteriorated more and faster than expected”.
News of Snap’s problems sent shares of many of its competitors down.
Facebook and Instagram owner
ID pads (FB) decreased nearly 10% while
Pinterest (pins) It fell more than 20%. YouTube and Google Parent
the alphabet (The Google) slither 6% and
Global X Social Media ETF (SOCL)That owns shares in all of these companies, down 8%.
The social setback hampered the general mood of the market. Technology Overwhelmed
Nasdaq It was down 2.6% on Tuesday afternoon. The
daw It fell nearly 50 points or 0.2%, and
Standard & Poor’s 500 It fell 1.1%.
Twitter (TWTR)Which
It may or may not be obtained by
Tesla (TSLA) CEO Elon Musk – The Deal
Currently on hold It also decreased by 4%. The stock is now down about 35% from
Original Musk Bid Price $54.20 per share.
Investors in social media stocks are clearly concerned that advertisers may pull back from marketing spending due to a series of concerns.
The Russian invasion of Ukraine led to a sharp rise in oil and gas prices around the world. In addition to rising energy costs, inflationary pressures are putting a brake on corporate spending. The recent rise in Covid cases in China is another worrying sign for businesses and consumers.
Snapchat in particular has also been hurt by the increasing popularity of TikTok and other emerging social media services that are flocked to by younger users, such as
discord And
Amazon (AMZN)A owned video game streaming platform, Twitch.
Social media companies were
wrestling with negative influence on advertising revenue resulting from privacy changes from
apple (AAPL) For iPhone users and other devices running on the iOS platform.
The advertising landscape also worries analysts. “A broad recession in the advertising market appears increasingly likely,” Wells Fargo analyst Brian Fitzgerald said in a report released on Tuesday.
JMP Securities analyst Andrew Boone lowered his price target on Snapchat on Tuesday, saying that “the advertising environment is getting worse and we don’t have a clear view that this is the bottom.”
