Social media has had a rough 2022 with lingering questions about advertising spending, political ads and a
Then late Monday, Snap issued a rather dire profit warning, saying that “the macroeconomic environment has deteriorated further and faster than anticipated,” since just last month.
All social media competes for advertising money, which is increasingly under threat from spiking inflation and also changes at
Shares of
And with
If early declines hold, it could wipe more than
Snap late Monday said it now foresees revenue and adjusted earnings before interest, taxes, depreciation, and amortization coming in below the low end of its prior forecasted range.
“We believe it is better to view each channel in the context of the nature of advertisers and verticals, guidance history, revenue growth vectors, and investments to assess the level of risk to revenue and profitability from the macro environment," Patterson wrote.
The volatility comes in a week when both
A note from
“We believe its currently a 60% chance that Musk tries to walk and use this spam account issue as the scapegoat to get out of the deal and a 40% chance Twitter’s board and Musk come to a new deal price over the coming weeks," he wrote in a note to clients.
Twitter's stock fell more 3% when the market opened.
Adding to the social media tumult is Facebook's parent company Meta. The company said that it will start publicly providing more details about how advertisers target people with political ads just months ahead of the
Meta is particularly sensitive to the changes made at Apple and is now contending with a civil lawsuit against its chief,
Shares of
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source