Street View: Snap's Q2 warning spells trouble for ad-supported digital platforms

Fiverr International

24/05/2022 13:16

** Snap Inc  SNAP.N  on Monday said it will likely fall
short of its current-quarter revenue and profit forecast as the
"macroeconomic environment has deteriorated further and faster
than anticipated", forcing it to slow hiring among other
measures  urn:newsml:reuters.com:*:nL2N2XG013
    ** Multiple brokerages cut PT on the stock, stock plummets
~29% premarket 
    
    UNEXPECTED MOVE
    ** RBC Capital Markets ("Sector Perform", PT: $17) says SNAP
negatively pre-announced Q2 which will sound the alarm on the
deteriorating macro's evolving effects on digital advertising
    ** MKM Partners ("Buy", PT: $26) says surprising that other
internet peers like Bumble Inc  BMBL.O  and Fiverr  11V.F  did
not flag incremental macro headwinds, and its not entirely
impossible that SNAP could be facing pressure from TikTok and
changes to Apple Inc  AAPL.O  ad tracking framework
    ** Benchmark ("Buy", PT: $20) says the timing of the 2Q
pre-announcement, just one month after 1Q earnings, could spell
the end of SNAP's iOS fingerprinting benefits
    ** Apple Inc  APPL.O  is widely expected to stop
fingerprinting of iOS users - a move that would upset key
metrics digital platform companies use to sell ad space -
Benchmark
    ** JP Morgan ("overweight", PT: $26) says SNAP's earlier
forecast of 20% to 25% Q2 revenue growth had "embedded enough
conservatism as revenue was tracking +30% Y/Y through 4/21";
Adds that brand spending, seen to be ~30% of SNAP's revenue, has
been more impacted than direct response

 (Reporting by Yuvraj Malik)
 ((yuvraj.malik@thomsonreuters.com))