Oh Snap! Social media firms sink after bleak warning from Snapchat parent – Moneycontrol

Social media firms sink after bleak warning from Snapchat parent underlines how the Russia-Ukraine war, surging inflation and rising interest rates are hobbling social media companies at a time when they had just started recovering the impact of changes to Apple’s iOS operating system. Reuters May 24, 2022 / 08:40 PM IST (Representative Image)  Snap Inc’s (SNAP.N) shares plunged nearly 40% on Tuesday after a profit warning from the Snapchat parent signaled tough times ahead for the once-booming digital ad industry, sparking a sector-wide selloff.The company was on course to erase more than $14 billion in market value, while Meta Platforms (FB.O), Pinterest (PINS.N), Twitter (TWTR.N) and Google-parent Alphabet (GOOGL.O) were altogether set to lose nearly $140 billion if losses hold.Snap said on Monday it expected to miss quarterly revenue and profits targets that it set just a month earlier and would have to slow hiring and lower spending.The bleak view from one of the sector’s most known players underlines how the Russia-Ukraine war, surging inflation and rising interest rates are hobbling social media companies at a time when they had just started recovering the impact of changes to Apple’s iOS operating system.”Snap is a proxy for online advertising and when you see weakness there then you automatically…
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