Social media stocks sink in Snapchat alert
Ownership shares Snap (The Dow Jones Industrial Average fell 40% on Tuesday. This was their lowest level since March 2020, just days after the Covid-19 epidemic hit the United States. )
In a regulatory filing, the company said it was concerned by “bad macroeconomic conditions” and that it had affected its outlook.
Snap’s problems have sunk many of its competitors’ shares.
Owner of Facebook and Instagram Meta platform (It has come down to about 10% )Pinterest (Drop 30% was close to YouTube and Google Guardian )Alphabet (The fall was 8% )Global X Social Media ETF (The shareholding, which holds the shares of this company, decreased by 8%. )
This social problem has slowed down the overall market mood. On Tuesday, technology-based Nasdaq fell 3.7%. The Dow fell nearly 500 points, or 1.4%, and the S&P 500 fell more than 2.4%.
Twitter (This can be obtained by )Tesla ( CEO Elon Musk – the deal is currently on hold – has dropped 3% as well. Now, the stock is down about 35% from Musk’s initial buyout price of 54.20 per share. )
Social media stock investors are concerned that marketers may reduce their marketing budget due to various concerns.
Russia’s aggression in Ukraine has pushed up oil and other commodity prices around the world. High energy costs are reducing corporate spending. Another worrying sign is the recent rise in the Kovid case from China.
Snapchat has been particularly influenced by the popularity of TickTock and the rise of other social media platforms that young users prefer Discord and Discord. Amazon (Twitch is a Twitch-owned streaming video platform for games. )
The negative impact of changing privacy on advertising revenue for social media platforms has been a problem for many companies. Apples (IPhone and iPad users. )
Analysts are also concerned about the landscape of advertising. Wells Fargo analyst Brian Fitzgerald said in a report on Tuesday that “the depression in the broad-based advertising market is growing.”
JMP Securities analyst Andrew Boone lowered his Snapchat price target on Tuesday. He says the “advertising environment is getting worse” and has no way of knowing if it’s down.