Social media stocks plummeted due to the Snapshot warning

Shares Snap (SNAP) It dropped more than 40% on Tuesday, the lowest level since March 2020 after the Govt-19 epidemic hit the United States.
Company Said a regulatory filing Its blurred outlook was due to the fact that “the macroeconomic environment is deteriorating further and faster than expected.”

News of Snap’s woes dragged the shares of many of its rivals.

Owner of Facebook and Instagram Meta platforms (FB) Fell by almost 10% Pinterest (Pins) Fell by more than 20%. YouTube and Google Parents letters (Google) Fell 6% and Global X Social Media EDF (SOCL)It held shares in all of these companies which fell 8%.
The social downturn has hampered the overall mood of the market. Technology is rife Nasdaq It was down 2.6% on Tuesday afternoon. The Dove Fell nearly 150 points, or 0.4% S&P 500 Fell more than 1.3%.
Twitter (TWTR)No May or may not receive By Tesla (DSLA) CEO Elon Musk – Contract Currently suspended – fell 4%. The stock is now down nearly 35% Muskin Original Purchase Offer Price $ 54.20 per share.

Investors in social media stocks are worried that advertisers may recoup marketing costs due to concerns.

Russia’s invasion of Ukraine Oil and gas prices around the world have skyrocketed. In addition to high energy costs, inflationary pressures also cause a recession in corporate spending. The recent increase in Govt cases in China is another worrying sign for businesses and consumers.

Snapchat in particular has been hit by the increasing popularity of Dictoc and other emerging social media services that are accumulating younger users. Difference of opinion And Amazon (AMZN)– Owned video game streaming site, Twitch.
There were social media companies Struggling with negative impact Advertising revenue triggered by privacy changes Apple (APL) For users of iPhones and other devices running the iOS operating system.

Advertising landscape analysts are also concerned. Wells Fargo analyst Brian Fitzgerald said in a statement on Tuesday that “a widespread advertising market recession is on the rise.”

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JMP Securities analyst Andrew Boone cut his price target on Snapchat on Tuesday, saying “the advertising environment is deteriorating and we have no clear vision that it is bottom line.”

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