Facebook, Twitter stock dragged down by dour Snap earnings

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in General Discussion
Stock prices of Facebook, Twitter and other companies reliant on digital ad revenue fell on word that Snap's revenue was negatively impacted by new iOS privacy features.

Facebook App Tracking Transparency


Fallout from Snap's third quarter earnings miss soured shares of Facebook and Twitter on Thursday, with both companies showing steep drop-offs in after-hours trading.

Facebook shed $17 shortly after Snap reported third quarter earnings after the bell, a 6.4% decline that has stabilized to about 4% as of this writing. Twitter dipped nearly 8% to hit a nadir of $60.25, but the stock has since bounced back and is hovering at about 3% below its closing price. Digital advertising companies were also impacted by Snap's results, reports CNBC.

In its earnings report, Snap said its advertising business was disrupted by new iOS user privacy features introduced by Apple earlier this year. Released with iOS 14.5, App Tracking Transparency is a set of system tools that limits ad targeting by restricting third-party access to users' Identification for Advertisers (IDFA) tags. One rule requires developers to ask permission before tracking users across apps and the web by displaying a prompt on initial app setup.

"While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS," Snap CEO Evan Spiegel said.

Facebook has been a vocal opponent of Apple's privacy thrust, stating on multiple occasions that the iOS changes will eat into ad revenue and hurt businesses that operate on its platform. Despite warning investors of headwinds from ATT in April, the social network has yet to experience material impact from the privacy features and reported record ad revenues last quarter.

Facebook and Twitter are due to announce quarterly earnings next week.

Read on AppleInsider

Comments

  • Reply 1 of 6
    aw, that’s so sad! #thoughtsandprayers
    williamlondonTomPMRIOferjahbladebaconstangdjames4242watto_cobra
  • Reply 2 of 6
    Just wait until TRUTH Social launches, then they'll be issuing revenue drop warnings at least 2x daily! /s
    baconstangdjames4242JaiOh81watto_cobra
  • Reply 3 of 6
    Just wait until TRUTH Social launches, then they'll be issuing revenue drop warnings at least 2x daily! /s
    Just go and vaccinate and sashay away.
    williamlondon
  • Reply 4 of 6
    Just wait until TRUTH Social launches, then they'll be issuing revenue drop warnings at least 2x daily! /s

    why not? I root for Trump and I hope this will be a success. It's always good to hear voices outside the echo chamber! More competition is also cool. What's the problem here?
    williamlondon
  • Reply 5 of 6
    Pdybman said:
    Just wait until TRUTH Social launches, then they'll be issuing revenue drop warnings at least 2x daily! /s
    Just go and vaccinate and sashay away.
    10 posts in and your charm is already showing.

    I've already vaxxed, btw, and I'm very pleased with my synthetic parasite which hatched months ago. The 5G in my veins from the vaccine would be useless without a translator, which my parasite does for me. Thank goodness she is anti-magnetic by design so she can bypass all the magnetic hotspots now in my body caused by the vaccine.
    glennhwatto_cobra
  • Reply 6 of 6
    vedelppa said:
    Just wait until TRUTH Social launches, then they'll be issuing revenue drop warnings at least 2x daily! /s

    ...I root for Trump...
    Color me surprised, not.
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