Shares of social network operators Pinterest, Snap and Twitter all declined in extended trading on Wednesday after Facebook owner Meta Platforms issued its fourth-quarter earnings statement that sent the stock down 22%.
Shares of Snap fell as much as 21% after hours. Pinterest moved 10% lower, while Twitter was down 7%.
But the impact wasn’t limited to social media. Shares of Amazon, which has a growing advertising business, were down 3%. Amazon reports results on Thursday. Shares of Microsoft, which also has exposure to advertising, including through business social network LinkedIn, moved almost 1% lower.
Facebook’s earnings and user numbers for the fourth quarter fell short of expectations, and its quarterly revenue guidance range came in below consensus as well.
Microsoft CEO Satya Nadella talked up the opportunity in digital advertising last week, telling analysts that advertising revenue in the past 12 months, including LinkedIn, exceeded $10 billion before traffic acquisition costs.