Shares of social media companies are tumbling before the market open on Friday after a slew of news in the sector that concerned investors, including a report that
Musk has told prospective investors in his Twitter purchase that he plans to cut nearly 75% of Twitter’s employee base of 7,500 workers, leaving the company with a skeleton crew, according to a Thursday report by
Wedbush's
“Musk cannot cut his way to growth with Twitter and a number in the 75% zip code would be way too aggressive in our opinion out of the gates," he wrote.
A
Shares of Twitter dropped more than 4% in premarket trading.
Elsewhere in the sector,
Snap reported third-quarter revenue of
While the
A JPMorgan analyst note said that Snap is experiencing weaker demand due to macro pressures, platform policy changes and competition.
“We appreciate management’s efforts to control what they can—cutting costs & doubling down on more resilient performance-based ads—but trends remain choppy, and the macro backdrop is likely even tougher into 2023," the note said.
Adding to the mix are concerns about the way social media platforms are being used as the mid-term elections near. While platforms like Twitter,
Shares of
The flurry of news weighed on others in the sector as well, including Google parent Alphabet Inc., off 2%, and
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source