Snap Plummets as Apple Changes, Supply Chain Weigh on Ads
- Company projects revenue much lower than current estimates
- Apple’s ad tracking changes hurt Snap’s third quarter sales
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Snap Inc. shares tumbled as much as 27% after the owner of the Snapchat app warned that changes to Apple Inc.’s data collection rules and global supply chain issues are weighing on advertising spending, tempering its earnings forecast for the fourth quarter.
The company said it expects revenue of as much as $1.21 billion in the final three months of the year, less than the $1.35 billion analysts were projecting. Adjusted earnings before interest, tax, depreciation and amortization will be $135 million to $175 million in the period, much lower than the $299.3 million forecast from Wall Street.