ASAN - Why Tech Stocks Dropped on Friday
Technology stocks had another rough day on Friday, and the biggest reason appeared to be Snap's (NYSE: SNAP) earnings report. The company said it lost $422 million in the second quarter, despite a 13% increase in revenue and an 18% increase in users. Management also said revenue is flat so far in the third quarter, meaning its growth has slowed rapidly.
The news of Snap's poor results hit a host of technology companies that could be impacted by similar trends. Asana (NYSE: ASAN) was down by as much as 10.6% during the session, Unity (NYSE: U) dropped by as much as 10.9%, DocuSign (NASDAQ: DOCU) fell 6%, and HubSpot (NYSE: HUBS) dropped 7.6%. The stocks ended the day down 9.9%, 9.7%, 4.5%, and 5.8%, respectively.
There are a couple of factors impacting the market broadly. One is that we're clearly seeing a pullback in advertising spending. This could be due to the user-tracking transparency changes put in place by Apple last year, or it could be companies cutting spending in anticipation of slowdowns in their businesses.
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Why Tech Stocks Dropped on Friday