(Bloomberg) -- A collapse in shares of Snap Inc. dragged technology companies exposed to digital advertising lower late on Thursday after the owner of the Snapchat app warned that supply chain problems are causing customers to cut back on ad spending.
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Facebook Inc. and Twitter Inc. were among the biggest decliners, with each falling more than 6% in postmarket trading after Snap’s revenue and profitability forecasts for the current quarter fell short of the average analyst estimates. Shares of Google-parent Alphabet Inc. fell 2.8%. Snap shaes tumbled 25% in extended trading.
Snap’s results were hit by a recent change in Apple Inc.’s data policy that limits targeted advertising. This “will create some anxiety around Facebook and other social media companies,” wrote Adam Crisafulli, founder of the Vital Knowledge newsletter.
Read more: Snap Tumbles as Apple Changes, Supply Chain Weigh on Ads
The warning was the latest blow for Facebook, whose shares haven’t rebounded as strongly as peers after a selloff last month amid whistleblower allegations that prompted renewed scrutiny of its services. The stock had fallen 11% from a September record, based on Thursday’s closing price.
Facebook, Twitter and Alphabet are all due to report earnings next week.
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