Is it a Snapchat problem or an industry problem?
Shares of SNAP are down to $8.03 from $10.79 at the close. That 26% decline leaves it scarceful above the pandemic low of $7.89.
The company's revenue decelerated and that's being seen as an ominous sign for other internet companies that depend on advertising. Snap said it was facing near-term headwinds to revenue growth and didn't provide guidance.
Here are some post-market moves:
- Alphabet -2.6%
- Meta -4.8%
- Pinterest -9%
Despite that, S&P 500 futures are unchanged. The worry is that falling advertising spend is a sign that companies see (or anticipate) a fall in sales. That can be a self-fulfilling prophesy.
