Shares in Snap Inc (NYSE:SNAP) dropped 30% in after-hours trading after its Q4 revenue growth of just 5% to $1.36 billion fell short of Wall Street's $1.38 billion expectation, signaling a struggle in the digital advertising market.
The company's challenges have been amplified by stiff competition from giants like Meta and the impact of Apple's privacy changes.
Despite narrowing its net losses to $248 million from $288 million year over year and making strides in machine learning for advertising, Snap faces headwinds from the conflict in the Middle East and a tough operating environment.
This comes as Meta's shares surged 20% following its earnings beat, highlighting Snap's slower recovery and its ongoing efforts to attract advertisers in a competitive social media landscape.