Snap’s report incinerates $80 billion in ad industry market cap

Meta Platforms, Alphabet, Snap, Twitter and others see stock market losses due to diverse factors

Facebook-owner Meta Platforms, Google-owner Alphabet, and other companies that sell online ads lost about $80 billion in combined stock market value on Thursday after Snap posted poor quarterly results and warned of an uncertain outlook.

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Slammed by a weakening economy, increased competition from TikTok, and recent privacy changes on iPhones, the Snapchat owner missed second-quarter revenue targets and warned that “forward-looking visibility remains incredibly challenging.”

Its shares collapsed 26%, bringing Snap’s loss in 2022 to over 70%.

With Wall Street already worried about a potential recession, Snap’s report also sparked a selloff in rival internet ad sellers. Meta dropped 5% in extended trade, while Alphabet fell 3%, and Pinterest tumbled 7%.

Twitter’s shares fell less, losing just under 2%.

The drop in Alphabet’s shares cut its market capitalisation by over $40 billion, and Meta’s loss reduced its market capitalisation by about $25 billion. The drop in Snap’s shares evaporated $7 billion of its value.