Social Media Companies Face Ad Spending Reckoning Amid Coronavirus

With the coronavirus pandemic raging on in the U.S. and across the world, social media giants Facebook (NASDAQ: FB), Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Twitter (NYSE: TWTR), and Snap (NYSE: SNAP) are seeing a huge uptick in usage. But that isn't translating into increased ad spending on the part of advertisers.

After all, travel is halted, events around the globe are canceled, and local businesses are shuttered, forcing marketers for these services and events to rein in their spending. That's prompted some of the nation's largest social media companies to issue warnings, and investors to run for the hills. 

But just how bad of an ad spending reckoning they face depends on how long the world is forced to shelter in place and if and when life becomes normal again.

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Source Fool.com