Slumping ad market adds to troubles for Snap
STORY: Snap’s revenue growth over the latest quarter was its slowest as a public company
The company also forecast no revenue growth for the typically busy holiday quarter
Shares in the company fell nearly 30% in premarket trading on the news
Snap sells ads through videos and filters and is seen as an “experimental platform” by advertisers
But many tend to shift to more established platforms when budgets are cut back
Snap’s numbers cast a shadow for other platforms that rely on advertising revenue
So far this year, digital ad companies have together lost roughly $1 trillion in value
Intense competition from TikTok and challenges from Apple’s privacy changes contributed to the dip
Analysts are also concerned about Snap’s move to slash headcount by 20%
Snap’s stock is down 77% this year while Alphabet, Meta and Pinterest have lost between 30-60%
