3 Reasons I'm Avoiding Snap
Three major events could negatively alter the future of Snap (NYSE: SNAP). Apple's privacy policy, TikTok's extraordinary market share gains, and a dire global economic outlook may add pain to an already beaten-down stock.
The first major event that reshaped the landscape for social media platforms was Apple's new privacy policy changes it set forth in April of 2021. Before the changes, social media apps could track precise demographic information about their users. The comprehensive information allowed app companies to sell more focused ads than traditional advertisers. That advantage is now hindered.
In its fourth quarter 2021 earnings report, Snap CEO Evan Spiegel said: "Our advertising business was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July. While we anticipated some degree of business disruption, the new Apple provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS."
Source Fool.com
