Snap Warning Feeds Concerns Over Social Media Ad Splurge
- Snapchat maker on course for biggest ever share decline
- Study shows ad spend on social media will exceed consumption
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A warning from Snap Inc. is rattling technology investors who have got used to turbocharged growth in ad spending on social media.
Executives from the maker of Snapchat said Thursday that supply-chain bottlenecks are prompting companies to hold back on online ad spend for the upcoming holiday season, meaning sales will rise by only around 30% in the fourth quarter compared to analyst estimates of nearly 50%.