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(Reuters) - Snap Inc, owner of popular photo-messaging app Snapchat, on Thursday warned that upcoming privacy changes by Apple Inc could hurt Snap’s ad business although user growth and revenue beat analysts’ fourth-quarter estimates.
FILE PHOTO: A portrait of the Snapchat logo in Ventura, California December 21, 2013. REUTERS/Eric Thayer
Snap stock fell 7% to $54.02 after the bell.
Apple’s planned changes, to ask iPhone users for consent to track their data for personalized ads, could present a “risk” to advertiser demand, Snap said, but added it was unclear how that could affect business in the long-run.
“The disruption to ad targeting caused by the iOS 14 privacy changes will clearly be a worry for Snap, which has been steadily growing its armory of ad formats and advertisers,” said Tom Johnson, chief transformation officer at ad agency Mindshare Worldwide.