Defend Truth

International Finance

Facebook and Alphabet Pummeled After Snap Warns on Ads

The Alphabet Inc. Google search page is displayed on a laptop computer in an arranged photograph taken in the Brooklyn Borough of New York, U.S., on Friday, July 24, 2020. Alphabet Inc. is scheduled to release earnings figures on July 30. Photographer: Gabby Jones/Bloomberg
By Bloomberg
22 Oct 2021
0

A collapse in shares of Snap Inc. dragged technology companies exposed to digital advertising lower late on Thursday after the owner of the Snapchat app warned that customers are cutting back on ad spending.

Facebook Inc. and Twitter Inc. were among the biggest decliners, with each at one point sinking more than 6% in postmarket trading. Google-parent Alphabet Inc. slid 2.8%. Snap cited customers’ supply chain problems and Apple Inc.’s data collection policies for a revenue forecast that fell short of the average analyst estimate.

This “will create some anxiety around Facebook and other social media companies,” wrote Adam Crisafulli, founder of the Vital Knowledge newsletter. Snap shares tumbled as much as 30%.

Read more: Snap Tumbles as Apple Changes, Supply Chain Weigh on Ads

The stock fell more than 6% in after-hours trading

The warning was the latest blow for Facebook, whose shares haven’t rebounded as strongly as peers after a selloff last month amid whistleblower allegations that prompted renewed scrutiny of its services. The stock had fallen 11% from a September record, based on Thursday’s closing price.

Facebook is due to report earnings on Monday, followed by Alphabet and Twitter on Tuesday.

Snap’s report also weighed on other parts of the digital advertising ecosystem. Trade Desk Inc., which owns a platform for buying and managing ads, fell more than 5%, while peer PubMatic Inc. dropped 4%.

Pinterest Inc., which rallied this week on a report that PayPal is exploring a purchase of the company, also fell in after-hours trading, declining more than 2%.

Gallery

Comments - Please in order to comment.

Investigations

News & Analysis

Features

Newsletters

Community

DM168

Daily Maverick © All rights reserved

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


FAQ | Contact Us

Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

Daily Maverick needs your support

We're not asking you to pay for every article you read. We're asking you to support us so that we can keep doing what South Africa needs us to do. Without the support of our readers, we won't be able to keep going.

If you really can't afford the price of an extra cup of coffee a week, then know this: we will never force you to pay. We'e got your back and one day, you'll have ours.

SUPPORT DAILY MAVERICK
Become a Maverick Insider
Premier Debate: Gauten Edition Banner

Gauteng! Brace yourselves for The Premier Debate!

How will elected officials deal with Gauteng’s myriad problems of crime, unemployment, water supply, infrastructure collapse and potentially working in a coalition?

Come find out at the inaugural Daily Maverick Debate where Stephen Grootes will hold no punches in putting the hard questions to Gauteng’s premier candidates, on 9 May 2024 at The Forum at The Campus, Bryanston.