Why Meta Platforms, Roku, and Pinterest Stocks Crashed Friday Morning
Snap (NYSE: SNAP) released disappointing financial results after the market close on Thursday, reporting that advertisers are reining in spending as a result of the rapidly deteriorating economic landscape. That sent its stock down 28.1% on Friday, and several other companies that earn the bulk of their revenue from digital advertising plunged in unison.
Pinterest (NYSE: PINS) was among those hardest hit today, with shares down roughly 6.4%. Shares of Roku (NASDAQ: ROKU) and Meta Platforms (NASDAQ: META) also took a hit, falling 3.3% and 1.2%, respectively, on the day.
This sell-off hit these companies on fears that marketers are beginning to scale back spending in anticipation of a protracted downturn. Advertising is historically among the first expense items on the income statement to get the axe in the face of economic uncertainty. It's important to remember, however, that not all those that rely on digital advertising are created equal.
Source Fool.com
