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Snap Stock Plunges As Digital Advertising Ecosystem Takes Hit From Apple, Supply Chain Issues

Snap stock plunged on Friday as its September-quarter revenue miss and guidance also drove down shares in Facebook stock, Twitter (TWTR), Alphabet‘s (GOOGL) Google, Pinterest (PINS), Trade Desk (TTD) and others in the digital advertising ecosystem.

Snap (SNAP) reported third-quarter earnings after the market close on Thursday. The social media firm pointed to changes in Apple’s (AAPL) consumer privacy policies that impacted targeted advertising for the revenue miss. The changes make it harder to track consumers on the internet.

“Snap delivered spooky Q3 results and provided a scary Q4 outlook,” Brian White, analyst at Monness, Crespi, Hardt & Co., said in a note to clients. “Apple was called out as one of the culprits, combined with the impact of supply chain disruptions and labor shortages at advertisers.”

Snap stock plunged 22% to 58.91 on the stock market today. Facebook stock fell 4.6% to 326.25. Twitter stock retreated 3% to 63.46. Google stock fell 2% to 2,780.

How Apple Might Have Hurt Snap Stock

Facebook (FB), which reports earnings on Oct. 25, has been the most critical of the changes in Apple’s privacy policies. They were carried out in an upgrade to Apple’s iOS software earlier this year.

In addition to Apple’s privacy changes, global supply chain issues are now expected to impact digital advertisers such as Snap stock in the December quarter and beyond. That’s because online retailers will advertise less if they cannot meet holiday season demand due to product shortages.

Google stock reports earnings on Oct. 26. Pinterest stock fell 2.2% to near 60 amid speculation it could be acquired by PayPal Holdings (PYPL). Trade Desk stock dived 5.6% to 76.50.

However, Apple stock edged up a fraction to near 150.

Snap Plunges On Guidance

Snap stock reported adjusted earnings of 17 cents a share on revenue of $1.07 billion. Analysts expected Snap to report adjusted earnings of 8 cents a share, on revenue of $1.1 billion.

However, Snap estimated fourth-quarter revenue in the range of $1.16 billion to $1.2 billion. That was about 14% below analyst estimates of $1.36 billion.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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