Social media stocks plummet: reports

Stocks of online social media platforms saw a significant drop in market value among investors and shareholders, according to a recent report by Reuters.

The report states that Friday's (22nd July) share earnings closed with a notable decrease in the value of stocks of key social media and tech giants. Meta showed a decrease of 5.6%, Google's parent company Alphabet Inc dropped 3.3% and Pinterest fell 11.3% in stock value. 

Along with Meta, Alphabet and Pinterest, Snap Inc. and Twitter also showed a recent downward trend in stocks. Collectively, these companies are reportedly set to lose about $42 billion in market value, states Reuters. 

Twitter's recent downfall in stock value can be attributed to its ongoing battle with Tesla CEO Elon Musk, in closing the $44 billion purchase deal that Musk has recently backed out from. Reports indicate that Twitter's shares decreased a further 0.1% in an already falling trend. 

Reuters reports that global advertisers have begun to fall back on pushing ads on social media websites, owing to increasing interest rates and ongoing inflation. 

Due to labour shortages and disruptions in the supply chain, many global advertising firms are also cutting back on investing in online ads on sites like Snap Inc. - which featured a whopping 36.4% drop in shares at the time of the report. 

Snap Inc., owner of the social media app Snapchat, reported that it might have to look into alternative sources of revenue.