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Shares of Meta Platforms, Google-owner Alphabet and other companies that sell digital ads dropped late on Thursday after Snapchat owner Snap Inc blamed inflation for its slowest revenue growth since going public five years ago.

Snap was the first major social media company to release its September-quarter earnings, and its stock tumbled 25% following the disappointing results after the bell.Shares of other companies that sell internet advertising also fell, with Facebook-owner Meta down about 4%, Alphabet down 2% and Pinterest losing nearly 8%.

Snap’s warning comes as investors worry that the economy could become seriously damaged by the US Federal Reserve’s aggressive interest rate hikes aimed at cooling decades-high inflation. Snap debuted on the stock market in a hotly anticipated initial public offer in 2017 that priced its stock at $17 .

 

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