Every major player in the sector reported a notable slowdown in advertising revenue growth during the first-quarter earnings.
Snapchat Online Ad Business- 1st Quarter
Then, in a surprise announcement, Snap Inc., SNAP down by
the parent company of Snapchat.
Snapchat Online Ad Business- Announcement
Filing Monday that revenue and adjusted pretax earnings for the second quarter will come below the range company projection.
Snapchat Online Ad Business- Less the Expected
Snap’s online-ad business is a fraction of the size of Google’s, Facebook’s or even Amazon’s AMZN.
Snapchat Online Ad Business- Is a Fraction
Evan Spiegel said “the macroeconomic environment has definitely deteriorated further and faster than we expected.
Snapchat Ad Business- Faster than Expected
Mr. Spiegel added that managers at the company “have been asked to review spending to find additional cost savings.
Snapchat Online Ad Business- Review Spending
Snap’s shares fell 30% after hours on Monday following the disclosures. Facebook parent Meta sank 7%.
Snapchat Online Ad Business- Snap Shares
Given that second-quarter guidance was for 20% to 25% growth, that leaves a lot of downside.
Snapchat Online Ad Business- Quarter Guidance
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