• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

Snap’s Record Rout Leads $142 Billion Social-Media Selloff

October 23, 2021
in Finance
Reading Time: 2 mins read
A A
0
Snap’s Record Rout Leads $142 Billion Social-Media Selloff
0
SHARES
17
VIEWS
ShareShareShareShareShare

(Bloomberg) — Snap Inc. posted its biggest one-day drop on record after the Snapchat parent company warned that Apple Inc.’s data collection rules and global supply-chain bottlenecks are weighing on advertising spending.

Most Read from Bloomberg

The stock tumbled 27%, wiping out about $32 billion of a market value that now sits around $89 billion. The cautious outlook cast a shadow over ad-dependent peers, including Google-owner Alphabet Inc., Facebook Inc., Twitter Inc. and Pinterest Inc., which fell between 3% and 5% each.

All together, Snap’s warning erased about $142 billion of market value from the company and peers on Friday. Investors are bracing for Snap’s challenges to be felt industrywide, with Alphabet, Facebook and Twitter due to report quarterly results next week.

The S&P 500 Index snapped a seven-day streak of gains on Friday. Federal Reserve Chair Jerome Powell’s comments around rising inflation risk added to investor concern regarding Snap’s impact on technology shares.

“You bring those two themes together, and I think that’s spooked the market going into next week with earnings,” Jonestrading Chief Market Strategist Michael O’Rourke said in an interview.

“Management almost couldn’t have sounded worse around the effects this is having,” Brad Erickson, analyst at RBC Capital Markets, wrote in a note on Snap. Sticking to his outperform rating on the stock, Erickson said the credibility of the company’s leadership may have been permanently damaged, though he remains bullish on long-term growth prospects.

Speaking on a post-earnings call with analysts, Chief Executive Officer Evan Spiegel said data collection rules introduced by Apple have made it difficult for advertisers to measure and manage their ad campaigns. Snap expects adjusted earnings before interest, tax, depreciation and amortization of $135 million to $175 million in the last three months of 2021, much lower than the $299.3 million forecast from Wall Street.

Facebook, Twitter

Earlier this year, Apple started requiring all apps on its iOS 15 platform to get iPhone users’ permission to be tracked for advertising purposes. Analysts are warning that the impact could be long lasting, while supply-chain snags at Snap’s advertising partners are most likely to be transitory.

Morgan Stanley’s Brian Nowak said he sees the impact from Apple’s privacy changes hurting Facebook’s revenue by low-to-mid single-digit percentages. He expects Twitter to be weighed down more in the next two years as the changes hurt the micro-blogging company’s “multi-year bull case.”

Facebook Sinks as Analysts Debate Snap Readthrough: Street Wrap

Though Snap could face the worst impact among peers from Apple’s changes, JPMorgan analyst Doug Anmuth said Facebook’s profile looks similar. For Google, supply bottlenecks are more of a concern, he said.

Snap said its advertising partners across a variety of industries are facing supply-chain disruptions and labor shortages. This is occurring at a time when these partners would normally be operating at peak capacity, generating the strongest and most valuable quarter for ad revenue. But marketers can’t advertise for products they can’t sell.

(Updates stock moves, market value losses and chart.)

Most Read from Bloomberg Businessweek

©2021 Bloomberg L.P.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Associated Press To Run Chainlink Nodes, Bringing Trusted Data To Blockchains

Next Post

‘We’re definitely not doing enough’ to help global vaccinations: Former U.S. Commerce Sec.

Related Posts

Couche-Tard says high prices boost sales of cheap beer & tobacco
Finance

Couche-Tard says high prices boost sales of cheap beer & tobacco

June 30, 2022
7
Economic Pressures Contribute to Finance Leaders Improving Last-Mile Readiness
Finance

Economic Pressures Contribute to Finance Leaders Improving Last-Mile Readiness

June 29, 2022
7
The Linux Foundation and Fintech Open Source Foundation Announce the Schedule for Open Source in Finance Forum London 2022, July 13
Finance

The Linux Foundation and Fintech Open Source Foundation Announce New Keynote Speakers for Open Source in Finance Forum London 2022

June 29, 2022
6
Climate Impact X Selects Nasdaq Technology to Power New Global Carbon Exchange
Finance

Climate Impact X Selects Nasdaq Technology to Power New Global Carbon Exchange

June 29, 2022
5
Ball Announces Completion of Credit Facilities
Finance

Ball Announces Completion of Credit Facilities

June 29, 2022
7
Next Post
‘We’re definitely not doing enough’ to help global vaccinations: Former U.S. Commerce Sec.

'We're definitely not doing enough' to help global vaccinations: Former U.S. Commerce Sec.

Recommended

Canada’s Aurora Cannabis to shut down a facility in Edmonton

Arizent unveils the Best Places to Work in Financial Technology 2022

June 3, 2022
4
Imperial Oil to extract lithium from historic Alberta oil field

Imperial Oil to extract lithium from historic Alberta oil field

June 24, 2022
4
ARK investment launches the first issue of “the Bitcoin monthly”

ARK investment launches the first issue of “the Bitcoin monthly”

June 4, 2022
7
Silence on the stock selloff

Silence on the stock selloff

June 18, 2022
5
FBI says crypto fraudsters are a huge threat on LinkedIn

FBI says crypto fraudsters are a huge threat on LinkedIn

June 18, 2022
6
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Couche-Tard says high prices boost sales of cheap beer & tobacco
  • New referendum-led governance structure proposed for Polkadot
  • Economic Pressures Contribute to Finance Leaders Improving Last-Mile Readiness

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?