(Bloomberg) — Shares of social-media companies fell on Wednesday, after comments from Alphabet suggested the potential for another headwind to online advertising revenue, months after a similar move at Apple weighed on the industry.
The Google parent said it was bringing its Privacy Sandbox initiative to Android phones, a change that could ban data tracking across multiple applications.
Shares of Facebook parent Meta Platforms fell 2%, extending its pronounced year-to-date underperformance. Snap dropped 3.4%, Pinterest fell 0.6%, and Twitter lost 2%. Digital Turbine fell 9.4%, even as Oppenheimer writes that the the company could see a positive from Alphabet’s move.
With the day’s decline, Meta is now down more than 35% in 2022, compared with a decline of roughly 6% for the S&P 500 Index.
Much of Meta’s weakness this year has stemmed from a catastrophic quarterly report earlier this month, where among other headwinds, it said that Apple’s crackdown on targeted advertising may lower its revenue by $10 billion this year.
(Updates to market close.)
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