Social media stocks lost more than $180 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 as much as 41%, their biggest intraday decline ever to trade below its 2017 initial public offering price of $17. The selloff erased about $15 billion in market value. Added to the value of declines for peers including Facebook-owner Meta Platforms Inc., Google-owner Alphabet Inc., Twitter Inc. and Pinterest Inc., the group has seen $181.1 billion billion wiped out.
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The news spurred widespread selling across the advertising and ad-tech space. Among notable decliners, Trade Desk Inc. sank 20%, fuboTV Inc. lost 8%, Magnite Inc. lost 14%, LiveRamp Holdings Inc. slid 9%, Roku Inc. dropped 17%, and Vizio Holding Corp. was down 8.1%. In addition, Omnicom Group Inc. fell 6.4% and Interpublic Group of Cos lost 4.9%.