Meta, Pinterest, Alphabet, and Snap Stocks Drop Catastrophically

Rapidly growing competition in the digital market and the global economic crisis are directly reflected in the value of tech giants’ shares. Companies such as Pinterest, Alphabet, and Meta are reported to be experiencing serious cost drops. And Snap predicts no revenue growth at all.

Last week, Snap confirmed that the brand’s shares had fallen 77% during the year. The company reported a slowdown in revenue growth in the previous quarter, which is why experts predict zero revenue growth at the end of the year. Of course, it led to a drop in the income of other services owned by the company. At the same time, specialists from Wall Street, on the contrary, predicted an increase of 3.3%. According to analysts from Atlantic Equities, TikTok is the main competitor to Snap in the first place. Because of its activities, advertising, development, and time costs will continue to rise in 2023.

Back in August, Snap announced a planned layoff of 20% of employees and the closure of projects related to drones and games. It was done to save money and prepare for a possible deterioration in the economic environment. Such plans caused concern among industry experts, as the company’s workforce grew by 30% during the previous year. The reduction of a significant number of employees would definitely affect the development of the company and would most likely make the achievement of the set high goals difficult, if not impossible.

By the way, such a challenging situation is also observed in the main competitors of Snap, like Meta, Alphabet, and Pinterest. According to various estimates, the shares of these brands have lost from 30% to 60% of their value. Perhaps the only company that has shown growth is Twitter. Its shares rose 21% ahead of Elon Musk’s purchase.

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