Social media and “tech” companies who rely on advertising dollars to be profitable have been under considerable pressure lately—to put it mildly. SNAP was the first major advertising-dependent social media company to report earnings this week, and it was a bloodbath. SNAP shares plunged 26% following its report to its lowest price since 2019—just $7.88. Even the biggest of all social media companies - Facebook - has been caught up in the carnage. Now calling itself by the widely-mocked name “Meta”, Facebook is down 67% from its high of 13 months ago, which takes it all the way back to where it was in 2016. As one pundit put it, “Zuck sure has meta mess of Facebook!” (Chart by wolfstreet.com)
Jeffrey Cerny