Snap (NYSE: SNAP) issued a warning after the market close on Monday, suggesting that the economic picture was rapidly declining, sending its stock down as much as 41.7%. As a result, many digital advertisers and social media stocks plunged in unison.
Pinterest (NYSE: PINS) was hit the hardest, with shares down roughly 22% at 1:30 p.m. ET. Shares of The Trade Desk (NASDAQ: TTD) and Roku (NASDAQ: ROKU) had fallen 19.8% and 18%, respectively. Meta Platforms (NASDAQ: FB) was down 9.6%, while PubMatic (NASDAQ: PUBM) , Magnite (NASDAQ: MGNI) , and Criteo (NASDAQ: CRTO) slumped 15.4%, 14.2%, and 5.4%, respectively.
This sell-off seemed to indiscriminately take down nearly every company that relies on digital advertising for its livelihood, on fears a recession might be at hand. Advertising is among the first cost items on the income statement that companies look to slash in the face of an economic downturn, but not all digital advertisers are created equal.
For further details see:Why The Trade Desk, Meta Platforms, Roku, and Other Digital Advertising Stocks Crashed Today