Snap crashes drags peers as dire forecast sparks ad growth fears Mtgfx - Advmk HEAD TOPICS

Snap crashes drags peers as dire forecast sparks ad growth fears

10/21/2022 2:10:00 PM

Snap crashes drags peers as dire forecast sparks ad growth fears

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Reuters

Snap crashes drags peers as dire forecast sparks ad growth fears Shares of Snap Inc sank about 25% before the bell on Friday, after the owner of photo messaging app Snapchat forecast zero revenue growth for the current quarter, triggering a slide in other social media stocks dependent on advertising revenue. Macroeconomic concerns, changing social media user behavior affects advertiser spending"We believe Snap is facing increased competition, primarily from TikTok, both for time spent and increasingly for ad dollars, which is compounding the challenges of a softer macro and Apple's (privacy-related) changes," Atlantic Equities analysts said in a note. Register now for FREE unlimited access to Reuters.comRegisterThe brokerage said competition is likely to continue to increase in 2023.Snap, on Thursday, reported its slowest revenue growth as a public company for the latest quarter and forecastno revenue growth Read more:
Reuters » Snap stock plummets more than 25% as online advertising continues to struggle Jaguar buzz: USA hosts Troy in ‘Battle for the Belt’ Snap Stock Plunges As Sales, Outlook Disappoint Stocks making the biggest moves after hours: Snap, CSX, Whirlpool and more

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Sterling rallied on Thursday and investors reined in their bets on a big Bank of England interest rate hike in November as UK Prime Minister Liz Truss announced her resignation just six weeks after she was appointed. Read more >> Snap stock plummets more than 25% as online advertising continues to struggleSnap’s shares worsened as the stock plummeted more than 20% in after-hours trading. Snap reported revenue growth of less than 6%, and said sales are growing only 9% so far in the 4th quarter while declining to provide full holiday-season forecast. No one uses Snap they should just sell themselves. Why does it make me happy whenever a social media company drops... Jaguar buzz: USA hosts Troy in ‘Battle for the Belt’Here's what you need to know as the Jags take on the Trojans on Thursday night. Snap Stock Plunges As Sales, Outlook DisappointSnap kicked off earnings season for social media and tech companies today on a sour note with solid user numbers but lower than expected revenue and a dim fourth-quarter outlook with sales expected to be flat. Shares are down nearly 25% Stocks making the biggest moves after hours: Snap, CSX, Whirlpool and moreThese are the stocks posting the largest moves in after hours trading. Snap Crackled, Now It StoppedHeard on the Street: Amid a challenging macroeconomic backdrop, Snap is cheap but clearly not cheap enough Snap stock plunges amid record slow revenue growthShares in Snap Inc. plummeted more than 20% Thursday after the camera app reported its slowest-ever quarter for revenue growth since going public in 2017. all slid between 1.A bruising year for Snap Inc.THREE THINGS TO LOOK FOR 1.Snap kicked off earnings season for social media and tech companies today on a sour note with solid user numbers but lower than expected revenue and a dime outlook for the fourth-quarter where sales are expected to be flat. 7% and 9.2% in premarket trade. Snap SNAP, -0. Macroeconomic concerns, changing social media user behavior affects advertiser spending "We believe Snap is facing increased competition, primarily from TikTok, both for time spent and increasingly for ad dollars, which is compounding the challenges of a softer macro and Apple's (privacy-related) changes," Atlantic Equities analysts said in a note. This will be the first of what should be a number of chances to challenge each other directly, either in the Sun Belt or elsewhere. Register now for FREE unlimited access to Reuters. The social-media company, which laid off roughly 20% of its staff this summer in response to the issues, also declined to provide a full forecast for the important fourth quarter.com Register The brokerage said competition is likely to continue to increase in 2023.S. Snap, on Thursday, reported its slowest revenue growth as a public company for the latest quarter and forecast no revenue growth in the typically busy holiday quarter, while Wall Street analysts were expecting a 3. “We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital. The Troy offense has appeared more consistent with Doege (a one-time starter at West Virginia) at the controls, as Watson has been prone to mistakes (he’s thrown seven interceptions this season).3% rise, according to Refinitiv data. The company had said in August it would lay off 20% of its employees and discontinue projects such as gaming and a flying camera drone to cut costs and brace for a deteriorating economy. The board did approve a $500 million share repurchase, a first for the young company. "Given SNAP had been growing headcount over 30% y/y for 4 straight quarters, we wonder if the company can execute on its lofty growth objectives with a 20% smaller employee base," Jefferies analysts said in a note. Richard Jibunor, T. Snap's stock, now trading at $8.” Snap’s results — the first among the major tech companies who rely heavily on digital advertising — likely portend even more turbulent times ahead for Alphabet Inc. The one-time charge was due in large part to layoffs announced in August. 06, has lost about 77% of its value so far this year, while Alphabet, Meta and Pinterest have lost between 30% and 60%. Twitter, however, has gained 21% on the prospect of billionaire Elon Musk buying the company.34% GOOG, +0. The Jaguars’ offensive line is much improved, but faces arguably their biggest challenge of the year. Register now for FREE unlimited access to Reuters.com Register Reporting by Akash Sriram in Bengaluru; Editing by Savio D'Souza Our Standards: . META, -1.