Shares of Google and Facebook Owners Drop after Snap Warning
- businessupside2020
- Oct 31, 2022
- 1 min read
Original Content- Business Upside
Shares of companies selling digital ads, like Alphabet and Meta, dropped after Snap, the owner of Snapchat, announced it was seeing the slowest growth in its revenue since five years when it went public. Snap Inc. mentioned inflation as the reason behind this slower growth in revenue.
The reason
Snap Inc. released figures on its earnings for the September quarter as the first big social media establishment to do so. The company’s stock tumbled 25% after the result was out, and Snap warned that revenues wouldn’t come in the holiday quarter.
The announcement by Snap Inc. made the shares of other companies selling digital advertisements fall as well. The shares of Meta, the Facebook owner, and Alphabet, the Google owner, dropped by 4% and 2%, respectively, and Pinterest shares fell by almost 8%. The ultimate impact was the loss of more than $40 billion in stock market value from all the digital ad companies, including Roku and Spotify.
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