Snap’s warning causes shares of Meta, Alphabet, and Pinterest to fall.
- After Snapchat owner Snap Inc blamed inflation for its worst revenue growth since going public five years ago, Meta Platforms, Alphabet, and other digital ad sellers fell late Thursday.
- After poor September-quarter earnings, Snap’s shares fell 25%. Snap predicted flat holiday quarter sales.
- Facebook-owner Meta, Alphabet, and Pinterest also lost shares. Those and other internet ad firms, such as Spotify and Roku, lost roughly $40 billion in late trade.
- Meta’s 60% year-to-date decline and Pinterest’s approximately 40% decline precede Snap’s warning.
- The US Federal Reserve’s aggressive interest rate hikes to temper decades-high inflation scare investors.
- Snap’s shares fell 90% from its September 2021 record high close to $8. Snap’s 2017 IPO at $17 was highly anticipated.