Snapchat Takes Other Social Media Stocks Down With It On Apple Privacy Changes Warning: What You Should Know

Snapchat parent Snap Inc.’s SNAP acknowledgement that its ad business was impacted by Apple Inc.’s AAPL iOS 14 privacy changes dragged stocks of other social media rivals such as Facebook Inc. FB, Twitter Inc. TWTR, Pinterest Inc. PINS and Alphabet Inc. GOOG GOOGL also lower on Thursday.

What Happened: Snap’s shares fell more than 21% in Thursday’s after-hours session after the company’s third-quarter revenue missed analysts’ estimates as its ad business was disrupted by changes to iOS ad tracking that were rolled out by Apple earlier this year.

Snap reported third-quarter revenues of $1.07 billion, up 57% year-over-year, but it missed analysts’ consensus estimate of $1.1 billion.

“While we anticipated some degree of business disruption, the new Apple provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” Snap CEO Evan Spiegel said during a conference call with analysts.

The CEO also warned that global supply chain issues and labor shortages were impacting its advertising partners.

See Also: Chief Business Officer Of Snap Sold $3.7M In Stock

Why It Matters: Shares of other social media companies such as Facebook and Twitter fell more than 4% and almost 5% respectively in after-hours trading following Snap’s disclosure.

Alphabet’s shares lost almost 2% and Pinterest’s shares tumbled almost 4% in the after-hours session.

It was reported on Monday, citing the Financial Times, that Apple’s advertising business has more than tripled its market share in the six months after it introduced the privacy changes that restrict rivals from targeting ads at consumers.

Facebook warned in July that it expects headwinds from Apple’s privacy changes to have a greater impact in its third-quarter compared to the second quarter.

Price Action: Snap shares closed 0.7% lower in Thursday’s regular trading session at $75.11 and further fell almost 21.6% in the after-hours session to $58.90.

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