Social media stocks slump

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

media firms fell sharply on Friday as Twitter joined the Snapchat owner in signalling 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. Advertisers have pared back spending amid rising interest rates and surging inflation as some of them struggle with labour shortages and supply-chain disruptions, Snap said on Thursday.

Investors are bracing for the slowest global revenue growth in the history of the social media sector as Apple’s privacy changes further cloud outlook.

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