Social media stocks slump as Twitter, Snap warn of dire ad spending

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Shares of social media firms fell sharply on Friday as Twitter Inc joined the Snapchat owner in signaling a cutback in digital ad spend as economic growth sputters.Pinterest Inc plunged 7.5 per cent, Facebook-owner Meta Platforms Inc dropped 4.6 per cent, Google-owner Alphabet Inc, which also sells ads on

Shares of social media firms fell sharply on Friday as Twitter Inc joined the Snapchat owner in signaling a cutback in digital ad spend as economic growth sputters.

Twitter also blamed its ongoing battle to close its $44-billion acquisition by Elon Musk for the surprise fall in quarterly revenue. The micro-blogging site's shares were marginally higher. Investors are bracing for the slowest global revenue growth in the history of the social media sector as Apple Inc's privacy changes further cloud outlook.

 

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Snap's report incinerates $80 billion in ad industry market capFacebook-owner Meta Platforms, Google-owner Alphabet and other companies that sell online ads lost about $80 billion in combined stock market value on Thursday after Snap posted poor quarterly results and warned of an uncertain outlook.Slammed by a weakening economy, increased competition from TikTok and
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Twitter blames Musk, weak ad market for drop in revenue:Twitter Inc on Friday blamed uncertainties related to its $44 billion acquisition by Elon Musk and a weakening digital ad market for a surprise fall in quarterly revenue. Twitter, which has sued Musk for dropping his offer to buy the company, said advertising revenue rose just 2 per cent to $1.08 billion.
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