Why did he fall? Blame Apple, the supply chain

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Shares of Snapchat maker Snap fell off a cliff on Thursday after the company reported its third quarter results. The company’s shares plunged 25% after office hours, Reuters reports. The reason? Snap executives said the company faces two threats: supply chain issues and the privacy changes Apple implemented on its iOS platform earlier this year. Supply chain issues weren’t necessarily something Snap directly faces, but they are a problem because other companies facing the global supply chain crisis have cut back on their advertising.

But the biggest issue that scared investors was the second issue: Apple’s privacy is moving to iOS.

Earlier this year, Apple introduced a major privacy feature called App Tracking Transparency (ATT) that allowed users to choose to opt out of third-party app tracking. This means that apps can no longer collect user data from third parties and use that data to better target them with advertisements, unless a user specifically authorizes the app to do so.

Apple’s ATT is one of the main reasons Snap missed its revenue expectations. As Snap CEO Evan Spiegel noted, “While we anticipated some degree of business disruption, the new measurement solution provided by Apple did not evolve as we expected, making it more difficult task of our advertising partners to measure and manage their advertising campaigns for iOS. “

But Snap wasn’t the only company to take a hard hit yesterday. After Snap’s results were released, other tech giants who rely on advertising for a large chunk of their income saw their shares plummet, CNBC reports. These include Twitter, Pinterest, Facebook, and Alphabet. But by far, Snap saw the worst drop at 25% in after-hours trading. Things aren’t looking much better for the stock this morning. Despite having recouped some of yesterday’s losses, Snap is still down more than 20% in pre-market trading today.

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