Big Tech stocks aren’t doing so hot on Friday and it looks like traders have Snap (NYSE:SNAP) to blame.
The problems from Snap are found in its earnings report for the third quarter of 2022. While the company’s EPS of 8 cents did beat out Wall Street’s breakeven estimate, revenue wasn’t as promising.
Instead, Snap reported revenue of $1.13 billion for Q3. That failed to reach the $1.14 billion that Wall Street had expected. This is despite the social media company reporting 363 million daily active users (DAUs).
Why Is This Affecting Big Tech Stocks?
The poor reaction to Snap’s earnings report has to do with advertising. Essentially, the company didn’t pull in as much money from advertisers as previously expected. Some traders see this as a warning signal that advertisers are pulling back spending due to the recession.
This matters to Big Tech stocks because many of them rely on advertisers for revenue. A few examples of companies that may be affected by reduced advertising money include Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Meta Platforms (NASDAQ:META) and Twitter (NYSE:TWTR).
Here’s a quick breakdown of the movement of these stocks as of this writing on Friday afternoon.
- SNAP stock is down 29%.
- GOOGL stock is down slightly.
- META stock is falling more than 2%.
- TWTR stock is sliding more than 4%.
Investors seeking out more recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Friday! A few examples include why shares of Altamira Therapeutics (NASDAQ:CYTO), XPeng (NYSE:XPEV) and Veris Residential (NYSE:VRE) stock are moving today. You can catch up on all of that at the following links!
More Friday Stock Market News
- Why Is Altamira Therapeutics (CYTO) Stock Up 70% Today?
- XPEV Stock Alert: 3 Things to Watch Ahead of the Xpeng Technology Day
- Veris Residential (VRE) Stock Soars 18% on Buyout Offer
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.