Social media names are under pressure following the big market capitalization wipeout of SNAP in an already challenging backdrop.
After a disappointing Q3, SNAP shares are down close to 30% at the market open today and the scrip has lost ~90% value over the past year. Additionally, the fact that the company did not offer any outlook for Q4 further adds to worries about growth.
Meta’s recent reveal of Quest Pro dint exactly elicit investor exuberance, TikTok continues to make market share gains, and the company is selling Giphy on an order from the Competition and Markets Authority (CMA).
Finally, Twitter, which Elon Musk is buying for $54.20 per share is also trending lower and continues to remain volatile on the chatter of Mr. Musk doing away with three-quarters of its headcount, and reports of a possible national security review.
Twitter, in the meantime, has notified its troops that there are no plans for large-scale layoffs (yet).
Here are the stocks related to this news:
- Snap (NYSE:SNAP)
- Twitter (NYSE:TWTR)
- Meta (NASDAQ:META)
- Pinterest (NYSE:PINS)
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