Social media stocks plunge $233 billion in one day as Snapchat becomes canary in the coalmine

Social media stocks on Wall Street shed a staggering $US165 billion ($233 billion) in one day’s trade following an ominous earnings warning from Snapchat’s parent company.Shares of Snap plunged more than 40 per cent Tuesday and hit their lowest level since March 2020, just after the COVID-19 pandemic hit the United States.The company said in a regulatory filing that its dim outlook was due to the fact that “the macroeconomic environment has deteriorated further and faster than anticipated”.Shares of Snap plunged more than 40 per cent Tuesday and hit their lowest level since March 2020, just after the COVID-19 pandemic hit the United States. (AP)News of Snap’s woes dragged down the shares of many of its rivals.Facebook and Instagram owner Meta Platforms fell nearly 8 per cent while Pinterest tumbled more than 20 per cent. YouTube and Google parent Alphabet slid 5 per cent and the Global X Social Media ETF, which owns shares in all of these companies, fell 8 per cent.The social setback put a damper on much of the market’s overall mood. The tech-laden Nasdaq was down about 2.5 per cent Tuesday. The S&P 500 dipped nearly 1 per cent and the Dow was flat.There are fears that…
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