Snap fell 31% on Wednesday after fourth-quarter sales fell short of Wall Street expectations.
According to the Reuters report, Snapchat has difficulty competing for advertising dollars with heavyweights like Meta and Alphabet.
The Snapchat owner’s losses contrast with rivals’ strong advertising sales, indicating that advertisers opt for larger, more reliable companies in an uncertain economy.
According to the report, Jasmine Enberg, principal analyst at Insider Intelligence, said, “Once again, Snap’s results have disappointed investors. “
Meta’s advertising sales increased by 25% during the holiday quarter, Alphabet’s Google’s ad business climbed by 11%, and YouTube’s ad sales increased by 16% during the same period.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
