Snap shares slide as advertising slump hits sales

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After it missed revenue expectations and warned of "incredibly challenging" conditions, shares in the owner of the social media platform fell.

Advertisers are cutting spending because of supply chain disruptions.

In New York, the shares of the company fell by more than 25%.

The shares of technology giants fell on concerns about the economy.

Wall Street was expecting revenue of more than $1 billion for the three months to the end of June, but it fell short.

Some of the company's advertisers have cut spending due to rising costs and supply chain disruptions.

Privacy changes to the iPhone, economic challenges, and increasingly tough competition for advertisers have slowed revenue growth.

By the end of June, daily active users on the ephemeral messaging app grew to 347 million.

It wants to grow its advertising business and find new sources of revenue.

After the results, shares in major technology firms that also sell online advertisements lost ground.

Results from larger rivals are due later on Friday, whileAlphabet is due to post its latest update on Tuesday and Meta on Wednesday.

The earnings of other social media companies are usually posted first.

They give a glimpse into the health of the whole sector.

There's a problem if there's anything to come by.

The business model of social media companies is very uncomplicated. They make money by advertising the product.

Advertisers aren't using it as much as they would like. They seem jittery.

It's a sign that the economy is not doing as well as it used to.

There are more than one factor at play.

Apple allowed users to opt out of personalized ads.

For a long time, advertisers have been charged eye-watering sums for the privilege of targeting their users.

The success of TikTok has hurt the older generation of social media companies.

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