Snap plunged after reporting disappointing sales, roiled by a major slowdown in ad spending and rising competition for dwindling marketing dollars. Shares of Meta Platforms and Alphabet fell in tandem.
Snap Inc. plunged after reporting disappointing sales, roiled by a major slowdown in ad spending and rising competition for dwindling marketing dollars. Shares of Meta Platforms Inc. and Alphabet Inc. fell in tandem.
“The combination of macroeconomic headwinds, platform policy changes and increased competition have limited the growth of campaign budgets,” the company said in an investor letter Thursday. The results “do not reflect the scale of our ambition,” Snap added. “We are not satisfied with the results we are delivering, regardless of the current headwinds.”
The Santa Monica, California-based company’s board authorized a stock buyback program of as much as US$500 million in the next 12 months to help offset the issuance of shares for employee compensation. Investors will be watching Snap for clues on the performance of other advertising-dependent social media businesses. Meta, Twitter Inc., and Alphabet all report earnings this month.
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