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- Snap (NYSE:SNAP) threw a bomb into the ad-dependent tech space on Friday. Shares plummeted in pre-market trading after the company's results showed that changes in Apple's (NASDAQ:AAPL) operating system had cut into its advertising revenue.
- The news sparked a sell-off among rivals with similar business models. This included declines in some of tech's biggest names, like Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Twitter (NYSE:TWTR) and Pinterest (NYSE:PINS).
- Elsewhere, Intel (NASDAQ:INTC) also suffered a pre-market decline. The company's quarterly revenue failed to meet analysts' expectations.
- Looking at some of the gainers before the bell, Digital World Acquisition Corp. (NASDAQ:DWAC) continued its staggering advance in pre-market action. The SPAC that signed a deal with former President Donald Trump's new media company looked poised for yet another massive rally.
- In other news, Zoom Video (NASDAQ:ZM) got a boost from an analyst's upgrade.
Decliners
- Snap (SNAP) plunged nearly 20% in pre-market action after its Q3 revenues came in below expectations. The top-line figure jumped 58% from last year, but the total of $1.07B failed to meet the $1.1B analysts had predicted.
- That miss might seem relatively small but the company also warned that changes in Apple's (AAPL) iOS platform have altered the environment for its advertising business. The company also noted headwinds from labor shortages and supply chain disruptions.
- The SNAP news put pressure on other companies that depend on advertising revenue. Fears that the iOS updates will impact the entire industry sent Facebook (FB) lower by nearly 4% in pre-market action.
- Twitter (TWTR) fell about 3%. Google parent Alphabet (GOOG)(GOOGL) and Pinterest (PINS) each dropped about 2%.
- Intel (INTC) represented another big-name decliner in Friday's pre-market action. Shares retreated nearly 9% following the release of the company's quarterly report.
- The semiconductor maker reported a quarterly profit that exceeded expectations, but its revenue figure came up short. Leaving out divested businesses, the company's sales totaled $18.1B compared to analysts' consensus of $18.2B.
Gainers
- Digital World Acquisition Corp. (DWAC) remained in the headlines Friday. After jumping more than 350% on Thursday in the wake of a deal to take former President Donald Trump's new media company public, DWAC advanced another 90% in Friday's pre-market action.
- Meanwhile, Zoom Video (ZM) advanced in pre-market trading as well, gaining about 3% on a positive analyst comment. J.P. Morgan raised its rating on the stock from Neutral to Overweight, arguing that any post-pandemic slowdown has now been baked into ZM's share price.
- Want to track Wall Street's biggest movers throughout the session? Turn to SA's dynamic On The Move section.