Tech

After a terrible shock on Thursday, all eyes swept the stock price 24 off in a snap

Snapshare fell 24% in after-hours trading yesterday as the social media group announced its fourth-quarter outlook, citing Apple’s new privacy policy as a key issue.

Snap, whose share price rose 52% this year at the end of the market on Thursday, dropped dramatically within minutes of its announcement, clearing $ 28.5 billion from market value.

Snapchat warned that next quarter’s revenue would be between $ 1.16 billion and $ 1.2 billion, well below the consensus estimate of $ 1.4 billion.

New rules introduced earlier this year make advertising more complex, and apps in Apple’s App Store need to get explicit permission from users to track for advertising purposes.

In a webcast hosted by Snap, CEO Evan Spiegel described Apple’s privacy changes as a “frustrating setback” for the company, but investors are reassured that they will prioritize rebuilding their advertising infrastructure. I let you.

Spiegel also cited the coronavirus pandemic as a key impact on results, explaining advertiser supply chain issues and labor shortage challenges.

Reflecting this, Snap’s Chief Financial Officer, Derek Andersen, said in Snap’s webcast:

“It’s not yet clear what the long-term impact of the iOS platform change will be. At least a few months before the ecosystem stabilizes and advertisers can fully implement the new solution under development. It may take more than that. “



After a terrible shock on Thursday, all eyes swept the stock price 24 off in a snap

Source link After a terrible shock on Thursday, all eyes swept the stock price 24 off in a snap

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