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Apple Privacy Moves Hit Snap Results Hard

Social media company says its ad business has been disrupted by changes in iOS ad tracking.
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Shares of Snap  (SNAP) - Get Free Report fell sharply in after-hours trading Thursday, after the social media company said its ad business had been hampered by changes in Apple’s  (AAPL) - Get Free Report ad tracking rules.

The stock fell $17.33, or 23%, to $57.78 in after-hours trading.

“Our advertising business was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July,” Snap said in a statement. “While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our ad partners to measure and manage their ad campaigns for iOS.”

Snap said it lost 5 cents a share in the latest quarter, vs. a loss of 14 cents a share in the same period a year ago. Analysts had been forecasting a loss of 10 cents a share. Revenue rose sharply, up 57% to $1.07 billion, but fell short of estimates calling for $1.1 billion.

The company offered fourth-quarter revenue guidance below Wall Street expectations. It said it sees sales in the quarter of $1.165 billion to $1.205 billion. Analysts were expecting $1.36 billion, based on a FactSet forecast.

Evan Spiegel, Snap CEO, said in a statement that "We’re now operating at the scale necessary to navigate significant headwinds, including changes to the iOS platform that impact the way advertising is targeted, measured, and optimized, as well as global supply chain issues and labor shortages impacting our partners."

Shares of other social media companies also fell in after-hours trading following the report.

Alphabet shares  (GOOGL) - Get Free Report lost $73.31, or 2.6%, to  $2,764.41. 

Facebook  (FB) - Get Free Report dropped  $16.48, or 4.8%, to $325.40.

Twitter  (TWTR) - Get Free Report fell $2.35, or 3.6%, to $63.05.