Snap plummets as slowing ad spend dents revenue; drags social media stocks

Digital Turbine

20/10/2022 23:20

(Updates)
    ** Shares of Snap Inc  SNAP.N  drop more than 27% to $7.85
in after-market trade as the Snapchat parent posts its slowest
revenue growth since going public five years ago
    ** Co reports Q3 revenue of $1.13 bln, up 6% from a year
earlier, but narrowly misses Refinitiv estimate of $1.14 bln
    ** Snap, hit by advertisers cutting spending amid inflation
and the war in Ukraine, says it expects Q4 revenue to be flat
compared with a year earlier 
    ** Snap's gloomy report pulls down shares of cos that rely
on advertising revenue
    ** Facebook owner Meta Platforms Inc  META.O  falls ~4%
while Alphabet Inc  GOOGL.O  drops ~2%; Pinterest  PINS.N 
slumps ~8% to $21.20
    ** The sell-off erased over $40 bln in stock market value of
internet ad cos, including Spotify  SPOT.N  and Roku  ROKU.O 
    ** Ad tech firms also stumble, with Trade Desk  TTD.O  down
~6%, Digital Turbine  APPS.O  off nearly 4% and Pubmatic
 PUBM.O  down ~3%
    ** SNAP shares down ~77% this year, as of last close; META,
GOOGL and PINS have lost between ~31% and ~61%
 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))