Snap's second quarter earnings bomb sparked a sell-off in shares of Meta and other social media stocks. The bad news has sparked a major sell-off in social media stocks, expected to wipe away $76 billion in total.Shares of social media companies were dropping on Friday following Snap's dismal second-quarter earnings report after the bell on Thursday. , dragging shares of Meta and Pinterest lower with it as investors fear a widespread slowdown in online advertising sales.
The social media sector is reeling from Snap's disappointing second quarter earnings, where it reported. Earnings per share fell $0.02 compared to projections of a loss of $0.01, and the company said it would slow hiring and would not offer guidance for the coming quarter. With Friday's steep drop, the stock has slid over 75% in 2022.
Snap admitted its disappointment in its earnings:"We are not satisfied with the results we are delivering, regardless of the current headwinds," the company said in an investor letter, citing low demand from advertisers as well as inflationary pressures. The company added that it would continue to make cuts to its hiring budget and operational expenses, but would not release any guidance for third quarter figures as"forward-looking visibility remains incredibly challenging.
Social media has been particularly hard hit among tech shares, as predictions of an economic slowdown lead to lower spending by advertisers. Meta's first quarter earnings shocked investors,Get the best of our site
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‘Awful’ snap sales wipe $76bn from social media stocksUS social-media companies are poised to see more than $76 billion wiped off their stock-market values Friday, after disappointing revenue from Snap Inc. and a lackluster report from Twitter Inc. raised concerns about the outlook for online advertising.
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‘Awful’ snap sales wipe $76bn from social media stocksUS social-media companies are poised to see more than $76 billion wiped off their stock-market values Friday, after disappointing revenue from Snap Inc. and a lackluster report from Twitter Inc. raised concerns about the outlook for online advertising.
Source: SundayTimesZA - 🏆 47. / 51 Read more »
Source: mybroadband - 🏆 11. / 67 Read more »