Social Media Stocks Sink to Erase $135 Billion on Snap Warning
- Snap shock is latest blow to falling social media stocks
- Nasdaq 100 Index falls 2.2%, extending this year’s tech slump
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Social media stocks lost more than $135 billion in market value Tuesday after Snap Inc.’s profit warning, adding to woes for a sector that is already reeling from stalling user growth and rate-hike fears.
Shares in digital ad-dependent Snap tumbled 43%, their biggest intraday decline ever to trade below its 2017 initial public offering price of $17. The selloff erased almost $16 billion in market value, and added to declines for peers including Facebook-owner Meta Platforms Inc., Google-owner Alphabet Inc., Twitter Inc. and Pinterest Inc.