Snap Shares Slide on Risks to Momentum Even as Sales Jump
- Company cites unpredictable impact of new Apple privacy rules
- Fourth-quarter revenue, user growth top analysts’ projections
Photographer: Andrew Harrer/Bloomberg
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Snap Inc. shares dropped in late trading after the company said it expects some unpredictability in 2021, citing risks to advertising growth from Apple Inc.’s changes to data-collection rules.
In prepared remarks to accompany its fourth-quarter earnings report, Snap executives outlined some challenges that put its momentum at risk in the short term. The violent riots at the U.S. Capitol caused some advertisers on its Snapchat mobile app to pause spending temporarily, for instance, and Snap said it can’t yet estimate the potential impact of Apple’s new privacy rules.