Bulletins

Snap said Apple's privacy push hurt its business, and investors are panicking

The company said Apple's ad-tracking changes are presenting a bigger challenge than it thought.

Snapchat Logo

Snap said Apple's privacy changes are presenting more of a challenge than it thought.

Image: Snapchat

Snap shares fell around 22% as the market opened Friday morning, the day after Snap announcing Apple's ad-tracking changes is presenting more of a challenge than it thought. "We grappled with industry changes to the way advertising is targeted, optimized, and measured on iOS that created a more significant impact on our business than we had expected," Snap's Chief Business Officer Jeremi Gorman said on the company's earnings call Thursday.


Snap continues to grow quickly, reaching 306 million daily active users during the most recent quarter and growing its revenue 57% year over year. But the company still missed its Q3 earnings target. Snap said the setback was brought on by a few different issues, namely supply and workforce problems, but seemed to pin the majority of the issues on Apple's new privacy rules that require apps to ask users if they want to be tracked. "While we anticipated some degree of business disruption," Evan Spiegel said on the earnings call, "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."

Facebook has also expressed concerns about the privacy change, saying the rule makes it harder to track ad performance. Lots of users have opted out of ad-tracking on Facebook's app since the change. Spiegel said that going forward, Snap is investing in building better "first-party tooling and measurement solutions" to better work with advertisers now that the third-party connects are increasingly untenable. Spiegel projected confidence for Snap's long-term future, but its investors are clearly nervous about where things go from here. And Snap's performance doesn't bode well for the other companies affected by Apple's policy change.

Correction: This story was updated to correct the number of Snap's daily active users. This update was made Oct. 22, 2021.

Latest Bulletins

Beijing is planning to come up with a blacklist designated to limit the primary way in which Chinese companies have raised funds abroad, effectively making it more challenging for China’s tech firms to list overseas, The Financial Times reported on Tuesday.

The blacklist will include Chinese startups in sectors that handle sensitive data or trigger national security concerns that plan to go public in overseas stock exchanges through the so-called variable interest entities (VIEs) scheme. Chinese authorities could release the negative list as early as this month, according to the FT. Companies that are already listed abroad using VIEs scheme won’t be affected.

The VIE is a legal structure many Chinese companies — including giants like Alibaba, Baidu and Tencent — have used for decades to evade foreign investment restrictions on overseas listings. Stateside, the SEC is also looking to restrict Chinese VIEs.

The upcoming negative list is Beijing’s latest regulatory move to rein in China’s tech industry.

China’s central securities regulator on Sunday denied a Bloomberg report that claimed China was seeking to block VIEs from listing overseas, adding that it was also not pushing companies using the structure to delist from U.S. exchanges.

When asked by her attorney if she ever intentionally misled investors in failed blood-testing startup Theranos, Elizabeth Holmes confidently responded, "Never."

Keep Reading Show less

Apple has successfully delayed the court-ordered requirement that it allow alternative in-app payment options as a result of the Epic antitrust trial, on the day before the Dec. 9 deadline set by the court when the ruling came down in September.

Keep Reading Show less

Meta is rolling out a new Professional Mode for Facebook profiles in the U.S., giving creators more ways to monetize their content, the company announced in a blog post Wednesday.

Keep Reading Show less

Better.com head Vishal Garg apologized for the way he handled a barrage of firings last week, according to a letter sent to employees that was leaked on Blind.

Keep Reading Show less

TikTok is making its first big live shopping debut in the U.K. on Wednesday with an event called “On Trend.” Between Wednesday and Thursday, brands and creators will show off exclusive discounts and products that people can buy directly off the platform.

Keep Reading Show less

Meta and IBM are joining the Data & Trust Alliance, a corporate-backed group that has developed an evaluation it hopes will combat bias in artificial intelligence systems that are used in hiring and employment decisions.

Keep Reading Show less

Twitter is testing a new approach to how users report tweets, giving users the ability to first describe the "symptoms" of their experience. Until now, Twitter has required users to specify the type of complaint they're lodging, under Twitter's policies, a confusing process that Twitter acknowledges "wasn’t making enough people feel safe or heard."

Keep Reading Show less

Roku and Google have struck an 11th-hour deal to keep YouTube’s apps on Roku’s streaming devices and smart TVs. The two companies renewed their distribution agreement for both YouTube TV as well as the main YouTube app, which was set to expire on Thursday. Without such a deal, YouTube apps would have disappeared from Roku's devices.

Keep Reading Show less

There’s no need for Meta or Lyft employees to rush back to the office, it turns out.

Keep Reading Show less

Stan Chudnovsky, vice president of Meta's messaging service Messenger, will leave the company in 2022, he announced on Facebook on Tuesday.

Keep Reading Show less

Twitter has acquired messaging app Quill, Nick Caldwell, general manager of Twitter's Core Tech unit, announced in a tweet thread Tuesday.

Keep Reading Show less

Elon Musk, in typical Elon Musk fashion, railed against federal spending on electric vehicles during Monday's Wall Street Journal CEO Council Summit. He also called CEO a "made-up title" and said that no one should be CEO forever.

Keep Reading Show less

The Senate confirmed Jessica Rosenworcel, acting chair of the Federal Communications Commission, for another term at the agency on Tuesday as the White House's tech nominees begin to take their spots.

Keep Reading Show less

Amazon Web Services US-EAST-1 experienced an outage Tuesday morning that left many websites unavailable.

Keep Reading Show less

Ubisoft has taken the plunge into blockchain gaming with the launch of Quartz, a non-fungible token platform for in-game items. The announcement, made in a YouTube trailer for the Quartz beta, makes Ubisoft the first major video game publisher to formally launch a crypto project.

Keep Reading Show less

Instagram announced a suite of new controls and features aimed at teens Tuesday, one day before Instagram head Adam Mosseri is set to testify before Congress on the app's impact on younger users. According to a blog post, the company will begin limiting the types of recommendations it makes to teen users, nudge those users away from topics they're dwelling on and urging young users in six countries to take a break from the app.

Keep Reading Show less

Samsung replaced the heads of its three biggest business units with two new co-CEOs, the company announced late Monday, merging its consumer and mobile electronics businesses.

Keep Reading Show less

Intel is planning to take Mobileye, its self-driving vehicle unit, public, sources familiar with the matter told the Wall Street Journal. The company confirmed its plans in a press release following the report..

Keep Reading Show less

Microsoft has told its partners that some customers will be charged 20% more for subscriptions to its Office suite if they want to have monthly plans, CNBC reported Monday.

Keep Reading Show less

As the NFT craze took over this year, people poured $26.9 billion into the digital ownership tokens in the first ten months of 2021, a report by blockchain analysis service Chainalysis found.

Keep Reading Show less

Google is embracing free TV for its Google TV platform: The company has struck a deal with ViacomCBS-owned Pluto to add over 300 free, ad-supported streaming TV channels to its Chromecast with Google TV streaming dongle as well as smart TVs running Google TV.

Keep Reading Show less

The planned launch of the White House’s Alliance for the Future of the Internet has been postponed, following substantial pushback from leading digital rights groups, according to two sources involved in the planning process, including one U.S. official.

Keep Reading Show less

The newest game on Facebook is one of the oldest in history — Pac-Man — but it has a twist. This version of Pac-Man is a competitive four-player take on the arcade classic intended to be livestreamed on the Facebook Gaming platform, so viewers can compete against streamers in a matter of seconds.

Keep Reading Show less

A former software engineer for Netflix was sentenced to two years in prison for taking part in an insider trading ring that generated more than $3 million, the U.S. Attorney’s Office in the Western District of Washington announced Friday.

Keep Reading Show less
Bulletins