Shares of Snap, the parent company of Snapchat, tumbled to a new low Monday after the company was downgraded by another group of investment analysts—Wedbush’s this time. They cut shares from an “outperform” rating to a “neutral” rating, fixing a $36 target price on stocks and writing that “we see risks to Snap’s revenue growth targets stemming from IDFA headwinds, difficult comps from stellar growth in 2020-21, and increasing competition from TikTok in particular.” “IDFA headwinds” refers to the tweaks that Apple made to privacy rules for mobile-app advertising back in April. An iPhone update gave users the power to stop advertisers from using a device ID. The move caused the social media giants to take a big wallop—reportedly a collective loss of $10 billion. Since then, TikTok’s rise has remained meteoric, Facebook shares have rebounded, and Google barely even registered the hit as YouTube’s parent company. Yet the downward arc has continued for Snap: Shares took a major plunge in October, going from around $75 to $55, after the company posted not great third-quarter earnings. Last week, shares sunk below $40 for the first time since late 2020 after Cowen, another investment firm, cut its rating, citing research that showed ad buyers are still hesitant to spend their money on the platform. Add Wedbush’s new downgrade, and this morning Snap shares opened 5% lower, at $30.50. For months, Snap has said it’s building new “tools” and “solutions” so advertisers can adapt to Apple’s privacy changes. It’s set to announce earnings on February 3, revealing how well it’s adjusted. Many other big tech companies are releasing earnings around the same time. (Microsoft, IBM, Intel, and Apple report theirs this week.) All of those numbers are coming into an environment on Wall Street where fears of runaway inflation and rate hikes are clobbering tech stocks just generally. Big Tech is actually seeing the worst start to a year since 2016, and meanwhile the Dow is down today by more than 730 points (or 2.2%), the S&P 500 fell 2.4%, and the Nasdaq Composite, which entered correction territory last Wednesday, lost 2.7% in morning trading.
Autentifică-te pentru a adăuga comentarii
Alte posturi din acest grup
Let’s address the elephant in the room: Amazon Prime membership costs aren’t getting any cheaper. My credit card just caught the brunt of the yearly auto-renewal.
And as I fondly r
I don’t know about you, but practically every time my phone rings, my heart rate starts skyrocketing.
Who the hell could be calling me? What in the world do they want? And why, for the l
As the clock ticks closer to a U.S. ban on TikTok, small businesses are bracing for the loss of an app that has, in many cases, proven vital for their success.
Millions of small business
Greg Epstein is the Humanist chaplain at Harvard University and at MIT, where he advises students, faculty, and staff members on ethical and existential concerns from a humanist perspective. He ha
Apple gives every iCloud user 5GB of free storage space. This storage space can be used for any
Apple, which has built its brand on data privacy, settled a class action suit this week in w
If Spotify Wrapped left you underwhelmed this year, TikTok’s “Dating Wrapped” trend is here to sp
