new-recommended-broker-banner new-recommended-broker-banner
Trade Snap Stock Your Capital Is At Risk

Snap Stock Price Slumps 22%, Blaming Apple’s Tweaks for Revenue Drop

Updated: 22 Oct 2021

The stock price of camera and social-media company Snap Inc (NYSE: SNAP) is approaching losses of nearly 50% in the last two days. It seems that the recent Q3 report illuminated some problems with marketing; placing the blame on the shoulders of Apple’s recent tweaks. 

The Q3 report wasn’t a prominent weight on the stock price of Snap; with analysts suggesting the Q3 dip is a hallmark of a much wider change to the mobile advertising space. Arguably, investors could have seen this coming as soon as Apple went ahead with the policy changes – with various platforms warning for months in advance that advertising revenue may not be what it once was. 

With Apple users now having to grant permission for the process that allows ad-targeting, companies that utilize mobile advertising to meet revenue targets are left lagging behind analyst expectations. Yet with Snap Inc only missing its guidance by $3 million – the stock tank bears witness to wider angst in the advertising space.

new-recommended-broker-banner

As the marketing wave battles with user privacy, the future landscape of mobile advertising may be laden with problems; especially for those who rely on ad-targeting for maximizing revenue potential. It will be interesting to see how this will affect other social applications and whether it will spur any change before we see Q4 results. 

SNAP stock is continuing to plummet moving into mid-market Friday, with a total daily loss of just under 25% – approaching a total 50% sell-off in the last two days of trading. 

 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .