By Sam Boughedda
Investing.com — Shares of Snap Inc (NYSE:SNAP) took a dive Thursday due to Meta missing earnings expectations and warning of slowing growth on concerns of rising competition and Apple privacy changes.
Shares of Snap fell more than 19.4%. However, they aren't the only company to feel the ripple effect of Meta's earnings, with other social media stocks such as Pinterest Inc (NYSE:PINS) taking a tumble.
Snap's shares were further weighed down after Keybanc analyst Justin Patterson lowered the price target on Snap to $36 from $85. However, he kept an Overweight rating.
In a note, quoted by TheFly, Patterson said he sees headwinds, including ad measurement driving shifts away from social, vertical headwinds, and margin pressure from investment.
The analyst also cautions that the extent of margin risk could be a new sentiment overhang but believes valuation multiples have swung significantly, which will leave room for the company's earnings results to be "less bad."
Snap and Pinterest are set to report their earnings after the closing bell.