Shares of Facebook, Twitter and digital ads drop sharply after Snap results – .

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Shares of Facebook, Twitter and digital ads drop sharply after Snap results – .


The logos of Twitter, Facebook and Instagram on the screen of an iPhone.
Tom Weller | DeFodi Images via Getty Images
Shares of Facebook and Twitter and other social media and digital advertising companies are down sharply in after-hours trading, after Snap reported it missed its third-quarter revenue expectations as the changes Apple’s iPhone privacy policies have disrupted its advertising business. Snap also warned that supply chain disruptions are choking short-term ad spend as companies don’t want to drive demand for products they may not have in stock.
Facebook and Twitter fell more than 6% and 5% after hours respectively, while Pinterest fell just over 2% after hours. (Pinterest also fell more than 2% in regular transactions following reports on Wednesday that PayPal was considering an acquisition.) Facebook and Twitter are expected to report their profits next week.

Digital advertising companies that mine customer data have also been affected. Trade Desk and Magnite each fell more than 5%, while Liveramp fell more than 3% after hours.

Tech companies have long been concerned about the privacy change known as ATT or App Tracking Transparency, which asks users through a pop-up if they want to opt in for tracking. Critics say it will be much more difficult for advertisers to track the effectiveness of their digital ads.

“While we anticipated some degree of business disruption, the new measurement solution provided by Apple did not evolve as we expected, making it more difficult for our advertising partners to measure and manage their advertising campaigns for iOS, ”said Snap CEO Evan Spiegel. his prepared remarks.

Spiegel also warned that supply chain disruptions and labor shortages were reducing “the short-term appetite to generate additional customer demand through advertising,” and prompted Snap to provide weaker advice than analysts expected for the fourth quarter.

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