Advertising technology stocks are getting crushed. This includes Google (GOOG), Facebook (FB), The Trade Desk (TTD), Roku (ROKU) and SNAP (down 40% today!).
Why are they falling?
As I discussed last week with Walmart (HERE) and Target (HERE) the U.S. consumer is facing tough choices with higher inflation. As food and energy prices spiral higher there's less spending available on discretionary items.
This means ADVERTISING for discretionary goods takes a hit.
Yesterday SNAP filed the following disclosure announcing that they were cutting their 2Q 2022 guidance:
"Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range."
This was only 33 days ago!
This suggests the economic environment is worsening RIGHT NOW and that we're facing a broader...