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Snap sets off alarm bells in ad-reliant social media sector
Snapchat makes deep staffing cut to ‘weather’ the economic storm: Tech analyst
Tech analyst Pete Pachal discusses Snapchat and its plan to lay off 20% of its workforce as they prepare to launch their ad-supported subscription tier on ‘Mornings with Maria.’
Snap Inc shares sank more than 30% on Friday and hit their lowest since the pandemic, after the company's forecast of zero revenue growth pointed to more pain ahead for a social media sector heavily dependent on digital advertising.
Facebook-parent Meta Platforms Inc and Pinterest Inc fell between 2% and 7%. Twitter Inc slid 3%, also dragged by fears of security reviews of billionaire Elon Musk's takeover bid.
Analysts rushed to cut their price target on Snap, with Morgan Stanley taking it to a Wall Street low of $7. In early trading the stock hit its lowest since early 2019.