On July 22, social media companies saw a $130 billion decline in market value as a result of weak quarterly reports. Investors are bracing for the social media industry to experience its slowest revenue growth since its inception in 2022. Social media businesses’ ad sales income surged by 36% YoY to $58 billion in 2021, making it a fantastic year for the industry. Inflation has reached a multi-decade high in 2022, and firms’ marketing spending has decreased as a result of the likelihood of a recession. The present economic crisis, according to Mark Zuckerberg, CEO of Meta Platforms, Inc., is among the worst in recent memory. Global social media ad revenue is anticipated to increase by 11% this year, according to media research company MAGNA.
Insider Monkey takes a look at 10 notable social media stocks that are getting hammered. Mark Zuckerberg, CEO of Meta Platforms, Inc., referred to the present economic downturn as one of the worst in recent memory. The revenue from social media advertisements is predicted to increase by 11% globally this year, according to media intelligence company MAGNA. The Hangzhou, China-based NetEase, Inc. corporation runs online music streaming services, mobile and PC games, e-commerce platforms, and advertising services. On August 30, the business is anticipated to release its Q2 2022 results. Internet corporation IAC/InterActiveCorp, with headquarters in New York, is present in more than 100 countries via media and Internet entities. Investopedia, Care.com, and Health Magazine are just a few of the well-known businesses that fall under the InterActive Corp. banner. Since the beginning of the year, Spotify Technology S.A. has seen a 57 percent decline in value. In an effort to improve music discovery and help performers find new fans, the business purchased the music trivia game Hurdle. Deutsche Bank decreased the target price for Snap Inc. shares from $25 to $14 and downgraded the stock from a Buy to a Hold recommendation. The company’s revenue shortfall and a flat YoY growth during this quarter were the significant takeaways from the quarterly report. For more details, click 10 social media stocks getting hammered.
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