Snap Stock Plummets On Profit Warning, Social Media Rivals Tumble On Ad Sales Caution

$Snap Inc(SNAP.US)$ , which makes the Snapchat messaging app, cautioned in a late Monday Securities and Exchange Commission filing that the group is likely to report "revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range".
Snap, which relies on ad spending for the vast majority of its revenues, said that the "macroeconomic environment has deteriorated further and faster than anticipated", causing companies to pull back on ad spending as they reevaluate priorities in a weakening economy.
Social media groups have also cautioned that $Apple(AAPL.US)$ 's - Get Apple Inc. Report Identifier for Advertisers (IDFA) privacy changes, which make it more difficult to track and target users with specific ads, have impacted both user growth and top line revenue gains.
Snap shares were marked 37.6% lower in early trading to change hands at $14.03 each. $Meta Platforms(FB.US)$ was marked 8% lower at $180.50 each while Google parent Alphabet $Alphabet-A(GOOGL.US)$ slumped 4.6% to $2,127.11 each.
$Pinterest(PINS.US)$ which posted its first-ever annual profit if February, was marked 19% lower at $1817 each while $Twitter (Delisted)(TWTR.US)$ fell 2.7% to $36.85 each.
While we acknowledge that the advertising environment is worsening and we have no clear view that this is the bottom, we view the selloff in shares as an opportunity for long-term investors