July 2, 2022

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Snap Shares Dropped 74% in 2022, Here’s Why

Snap Shares Dropped 74% in 2022, Here's Why

pop, explode (Explode, Explode) is reached. Since then, shares of the social media/camera company, which traded as high as $83.11 in September 2021, have plummeted amid rising inflation, the war in Ukraine and Apple’s privacy changes.

Snap shares have collapsed by a staggering 74.5% year-to-date, dropping to $12 before markets closed in New York.

Snape suggested the pain might continue, warning in Securities and Exchange Commission filing Last month, it likely didn’t meet its second-quarter guidance when it reports its earnings for the current quarter.

Snap – which has 332 million daily active users – is much smaller than its competitors Instagram, which continues to implement the temporary messaging app’s myriad features, and TikTok, which already has more than a billion users. While ad-reliant tech stocks are plummeting across the board, Snap seems to have taken the hardest kind of blow.

The Google (The GoogleAnd the The Google) also, but its shares are down just 22.9% year-to-date, trailing the broader S&P 500, but still better than Snap. Heck, even Facebook and Instagram’s parent Meta (dead) — down a staggering 47.8% year-to-date — outperforms Snap.

This doesn’t mean Snap doesn’t perform well on a basic level. in that First Quarter 2022 Earnings ReportSnap achieved an 18% year-over-year increase in daily active users (DAUs) and a 38% year-over-year jump in revenue to $1.06 billion.

However, this kind of growth was slower than him Performance of the first quarter of 2021when Snap saw DAUs grow 22% year over year and revenue rise 66%.

CEO Evan Spiegel acknowledged the slowdown in the first quarter of 2022, and commended the company for continuing to grow despite the challenging macro environment.

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Snap is facing the same headwinds as other players in the industry including the war in Ukraine, inflation, the specter of higher interest rates, and Apple’s privacy changes on iOS.

Apple’s changed app tracking transparency allows users to opt out of allowing apps to track their movement across different apps and websites. By preventing apps from tracking users across the web, ATT makes it more difficult to target users with specific ads. As a result, advertisers no longer have a clear understanding of who sees their ads and how effective their campaigns are.

While Jeremy Gorman Snap CBO told investors during Company Q1 earnings call They improve ad targeting, the process will take time. For their part, Snap investors may flee sooner rather than later.

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