Snap’s Warning Sends Shock Across Digital Advertising As Investors Flee Social Media Stocks

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on whatsapp
WhatsApp
Share on telegram
Telegram

Where Ted Talks end, Truth Talks begin.
Defending democracy by defending free speech

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

Snap’s Warning Sends Shock Across Digital Advertising As Investors Flee Social Media Stocks

By Lauren Feiner

– Snap CEO Evan Spiegel warned of slowing growth in a note to employees made public on Monday.
– His message sent a chill across the digital advertising industry.
– Analysts pointed to macroeconomic trends that could extend far beyond Snap.

Social media companies were already having a rough year from the cutback in digital ad spending caused by rising inflation, supply chain challenges and the war in Ukraine. Forecasts for the second quarter called for meager growth at best, and stock prices were getting hammered.

That was all before Snap CEO Evan Spiegel warned late Monday of an environment that’s worsened since his company reported quarterly results in April, when guidance was already disappointing.

In telling employees and Wall Street that “the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month,” Spiegel sent a shock across the digital ad industry and sent investors running for the exits.

Snap, which had previously projected second-quarter growth of 20% to 25%, lost an astounding 43.1% of its market cap on Monday. Beyond that, Pinterest plunged 23.6%, Facebook parent Meta dropped 7.6%, Google lost 5% and Twitter sank 5.6%.

Snap plunge Snap plunge

“Macro headwinds likely extend to all of digital advertising,” JMP Securities analysts wrote in a note following Snap’s disclosure. They added that brand budgets, and especially digital ones, “are more at risk of being reduced as companies tighten ad budgets,” while direct response ads, or those that encourage viewers to take immediate action, are “more connected to consumer spend, particularly eCommerce.”

Analysts at Stifel wrote that direct response campaigns “are likely starting to get hit a bit more from inflationary pressures,” and noted that Snap “is slightly more DR than brand currently.”

The outsized impact of Snap’s commentary is surprising given the company’s size. It generates a tiny fraction of the amount of money in a quarter that Facebook and Google earn. And Facebook already warned investors last month that revenue in the second quarter could decline from a year earlier, a stark admission from a company that had never seen anything below double-digit growth before this year.

But analysts at Atlantic Equities see justified concern in the broader market following Spiegel’s letter.

“Coming just a month after issuing guidance this would seem to highlight the current rapid pace of change in underlying economic conditions, with this likely to have negative implications for online advertising peers and also the wider internet sector,” the Atlantic Equities analysts wrote. “Snap’s warning is clearly a negative for all of the ad-supported peers.”

Piper Sandler analysts agreed, writing that “this is more macro and industry-driven versus SNAP specific.”

The fallout was so wide that it also hammered ad-tech platforms, which connect brands with publishers and ad-supported sites and apps. The Trade Desk plummeted 18.5% on Monday, while Pubmatic slid 15.9% and Digital Turbine fell 13.2%. They’ve each lost at least 45% of their value this year, compared to a 28% drop for the Nasdaq and a 17.3% decline for the S&P 500.

Editor’s Note: 
Newcomers such as the TruthGroup are taking advantage of the censoring by creating all major platforms but censor free.

As mainstream media dies, Truth Group and its platforms rise. Alternate independent media and alternate social media is booming. Every billion in market cap they lose is for the Truth Group to gain.

An array of Truth Group new apps designed to replace the major social media networks under the one brand the “Truth” Brand created by the “Truth Group” include TruthTweet (a Twitter alternative), TruthTok (a Tiktok alternative), TruthTube (YouTube alternative), TruthLook.com (a censor-free search engine), TruthGram (Telegram alternative) Truthpix (Instagram alternative),  TruthMeet (zoom like conferencing), TruthApps (WhatsApp alternative) and TruthChat (a messenger alternative), all designed to be censor-free, and with many being designed, so that a post to one, can be sent automatically to many.

Some of the Apps are launched already, such as Truthbook.social the alternative to Facebook with tens of thousands of users already posted over 100,000 posts in its short time since soft launch, with many becoming available soon.

Truthcoin is the currency behind Truth Group new apps, and it will be listed on selected crypto exchanges in late May 2022 to enable supporters to help fund this critical and much-needed alternate social media platform. Truthcoin set to launch its payment system TruthPay and list in June on Crypto Exchanges as TruthPay and TRP as its Exchange Ticker.

Truth Coin www.truthcoin.social is a large supporter of independent media and “Take back Our World” objectives, and it launches its Pre ICO ahead of June listing. Details here: https://truthcoin.social/en/truthcoins-ico/

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

*Note We Deliberately Miss Spell Some Words or Add Capital Letters To Get Around Big Tech Censoring.

Support the ANR from as little as $50 – it only takes a minute. If you can, please consider supporting us with a regular amount each month. Thank you.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on whatsapp
WhatsApp
Share on telegram
Telegram

Related News

Where Ted Talks end, Truth Talks begin.
Defending democracy by defending free speech

Subscribe for free to our ANR news emails and access 2 free ebooks plus Reports to share with family and friends about Covid fraud and the danger of the vaccines.

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset.

and help us expose the Covid Fraudsters

Leave a Reply

Your email address will not be published.

Play Video

McIntyre Report
Political Talk Show

Episode 146

How you can advertise on Truthbook.social

Jamie McIntyre
TruthBook.social Videos

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset.

and help us expose the Covid Fraudsters

Ukraine. Military Summary And Analysis 06.10.2022

Raw Report

Ryan Jackson Saw show

in USD

in AUD

in GBP

in CAD

Jamie McIntyre

ANR on

Currency Exchange Rates in AUD

Live and updated every minute of the day

Nurses Speak Out

Get our free News Emails on latest articles, alerts and solutions for both legal templates and ways to help fight back against the Globalists vax Mandates , and health resources to boost your immune system and ways to Protect from deadly EMF 5G radiation and more.

FREE E-BOOKS AND REPORTS ALSO

ANR Meme Report

with Nadine Roberts

Episode 002

21st Century Political System

Play Video

Editor's Pick

Thank you for visiting the
Australian National Review

To continue accessing more articles for free simply enter your email address

TruthTalks business partnership

Ideal for freedom movement activists, influencers, digital nomads, content creators and those who refuse to be silenced and want to expose the Globalists Agenda .

Truth Talks Partner Opportunity

Click here to learn more about this opportunity and how 12 online clients per year can earn you $203,000 USD per annum

Download the Full PDF - THE COVID-19 FRAUD & WAR ON HUMANITY