Photo: Diego M. Radzinschi/ALM Snap's Warning Looms Over Battered Online Ad Stocks
Most of the companies that dominate online advertising went public after the Great Recession of 2008-2009, so investors are getting their first taste of how well their businesses and share prices will hold up in a tough economy.
July 20, 2022 at 04:58 PM
5 minute read
Investments and Investment Advisory
Investors are learning that online advertising stocks may be just as vulnerable as old-school media companies amid a looming potential economic downturn.
Concerns over the sector have grown since Snap Inc. slashed its forecast in May, warning that a weaker economic outlook was weighing on its ad business. That sparked a selloff of more than 40%, its biggest one-day drop ever, and the stock is now down almost 70% in 2022. The parent of Snapchat releases second-quarter results Thursday after the market closes.
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