What Happened
Snap’s shares fell more than 21 percent in Thursday’s after-hours session after the company’s third-quarter revenue missed analysts’ estimates as its ad business was disrupted by changes to iOS ad tracking that were rolled out by Apple earlier this year.Snap reported third-quarter revenues of $1.07 billion, up 57 percent year-over-year, but it missed analysts’ consensus estimate of $1.1 billion.
“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,” Snap CEO Evan Spiegel said during a conference call with analysts.
Why It Matters
Shares of other social media companies such as Facebook and Twitter fell more than 4 percent and almost 5 percent respectively in after-hours trading following Snap’s disclosure.Alphabet’s shares lost almost 2 percent and Pinterest’s shares tumbled almost 4 percent in the after-hours session.
It was reported on Monday, citing the Financial Times, that Apple’s advertising business has more than tripled its market share in the six months after it introduced the privacy changes that restrict rivals from targeting ads at consumers.
