Shares fall

Snap (SNAP) shares fell 21% amid a report of Q3 2021 earnings below market analysts' forecasts. The company cited the stronger negative impact of Apple's privacy rule updates, as well as the impact on advertising of global supply chain issues. Shares of Facebook, Twitter and Google also fell at non-trading time.

Shares in Snap (SNAP) fell 21.6% after the close of trading on Thursday, losing $16.21 a share, following the release of its Q3 fiscal 2021 report, which ended in September.

Snap shares have risen 50% since the start of the year and 105.8% in the past 12 months.

Snap report highlights

Snap reported record earnings per share of $0.17, up from market analysts' estimate of $0.08. Earnings rose 58% (from last year's figure) to a record $1.07bn, but came in below Wall Street forecasts of $1.10bn. The rate of growth slowed from the previous three quarters.

Snap user growth

Snap daily there are 360 million active users per dau, which is 4% more than 293 million reported in April.This is almost 23% more than the 249 million daily users reported a year earlier. In the fourth quarter, DAU exceeded the market forecast of 311,8 million and is expected to reach 316 to 318 million.

In comments on the report, Snap executives said there were two major negative factors that affected the company's revenue and earnings in the quarter.

1. Apple's changes to user privacy rules in iOS;
2. Global supply chain issues affecting the digital advertising market.

Market analysts pointed to the short-term nature of these issues, but acknowledged that they could have a significant impact on the digital advertising market in the short term and affect the financial results of the industry's largest companies: Google (GOOGL, GOOG), Facebook (FB) and Twitter (TWTR).

Shares of Facebook, Twitter and Google fell 4.4%, 4.8% and 1.96% respectively in after-hours trading on Thursday.

Facebook will report its quarterly profit and earnings on Monday 25 October after market close, while Twitter and Google's financial reports will be published on Tuesday 26 October also after market close.