Social media stocks slump as Apple privacy changes slam Snap

Magnite

21/10/2021 22:23

(Updates)
    ** Shares of social media heavyweights sink in extended
trading
    ** Snap Inc  SNAP.N  falls short of Wall Street estimates
for quarterly revenue, says privacy changes implemented by Apple
Inc  AAPL.O  on iOS devices hurt co's ability to target and
measure its digital advertising  urn:newsml:reuters.com:*:nL1N2RH2RW
    ** SNAP says it expects the Apple privacy changes and global
supply chain disruptions to linger through Q4
    ** SNAP slumps more than 25%, says issue was compounded by
global supply chain disruptions and labor shortages, which
caused companies to pull back on their advertising spending
    ** "Snap's sharp decline in its revenue growth for the
current quarter is a huge negative surprise for the market which
was expecting the continuation of a winning streak in its
earnings,"- Haris Anwar, senior analyst at Investing.com 
    ** Results cast a shadow over sector, with Facebook Inc
 FB.O  and Twitter Inc  TWTR.N  reporting earnings next week
    ** TWTR falls 7%, FB down 6.4%
    ** Ripples also felt by Google-owner Alphabet Inc  GOOGL.O ,
Pinterest Inc  PINS.N , Etsy Inc  ETSY.O   
    ** Many of the advertisers who place ads on Snap are in the
beauty, fashion and consumer goods industries, creating further
uncertainty
    ** Digital advertisers Magnite Inc  MGNI.O  and Trade Desk
Inc  TTD.O  down ~5%; PubMatic Inc  PUBM.O  falls about 4%

 (Reporting by Noor Zainab Hussain in Bengaluru)
 ((noor.hussain@thomsonreuters.com))