Pinterest, Snap tumble 18% as outlooks disappoint investors

Shares of Pinterest and Snap dropped by 18% after their earnings reports disappointed the investors concerned about sluggish digital ad spending. Both social media companies missed analysts’ expectations for revenue growth, highlighting a pullback in advertising spending. As advertisers stick with established players in an economy full of uncertainties, it appears that they are shying away from smaller digital companies. The two companies lost $6bn in stock market value, with Snap missing analysts’ expectations for future revenue as a result of changes to its advertising platform.