Stock Markets49 minutes ago (Oct 22, 2021 05:44AM ET)
Investing.com – Facebook (NASDAQ:) and Alphabet (NASDAQ:) shares were under pressure in Friday’s premarket trading in a read across from Snap’s (NYSE:) badly-received third-quarter numbers late on Thursday.
Facebook stock traded 3.6% lower and Alphabet stock down 1.8%. Snap, with a much smaller market cap, plunged nearly 20% premarket.
Snap Thursday reported a 57% increase to $1.07 billion in third-quarter revenue but that was below expectations and illustrated the damage that Apple (NASDAQ:)’s new privacy rules are posing to apps dependent on advertising revenue.
“While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” CEO Evan Spiegel said.
The company had warned pf the impact when it published its second-quarter earnings, but the stock had held its ground, supported by confidence that social media companies were largely immune to the problems of supply chain disruption that have plagued retailers and manufacturers in recent months.
The company said fourth-quarter revenue should be around $1.18 billion, as the privacy changes exert a continued drag on performance.
Facebook too has warned of the rules posing a challenge to it and its advertisers though comments made by a senior executive last month seemed to provide some succor. Graham (NYSE:) Mudd, Vice President of Marketing at the social media giant, said the company is likely understating the effectiveness of its advertising on Apple devices.
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