Snap Inc. Dials Back Targets, Falls 40%

May 24, 2022

Snap, Inc., a camera and social media company, became the latest tech stock to plummet after it announced late Monday it would miss its previously expected levels of earnings and revenue, blaming the deterioration in the macro environment.  

Its shares were down 40% in early trading on Tuesday, but that’s only the latest blow to a company that has seen its stock price tumble roughly 80% over the past 12 months in total.  

 

Source: Yahoo Finance 

 

Immediately prior to today, the stock was a holding in 129 ETFs, which owned 36.1 million shares in aggregate. The Simplify Volt Pop Culture Disruption ETF (VPOP), a fund with less than $1 million in assets under management, has the largest allocation to SNAP of any U.S.-listed ETF, weighting the stock at 10.46% of its portfolio.  

 

Read Why Snap Inc.'s Crash Reverberatd Across Markets

 

The $202 million Global X Social Media ETF (SOCL) has the second-largest allocation, at 7.29%. That’s followed by the $531 million Roundhill Ball Metaverse ETF (METV), with a 5.29% weighting to the stock.  

 

 

The ETFs that own the most shares of SNAP are an interesting mix.  

The $252 billion Vanguard Total Stock Market ETF (VTI) holds 7.97 million shares, or 22% of all the SNAP shares held by ETFs. It allocates 0.10% of its portfolio to the stock. The $67.7 billion Vanguard Growth ETF (VUG) owns 4.91 million shares via its 0.21% weighting in SNAP, and the $4.3 billion First Trust Dow Jones Internet Index Fund (FDN) owns 4.06 million shares through its 2.32% allocation to the stock.  

 

 

Of the 129 ETFs that own SNAP shares, the largest portion—36 funds—are plain vanilla funds. But 29 funds that hold the stock are actively managed, and another 18 rely on fundamentally weighted strategies.  

 

 

A drop-off in advertising appears to be the main culprit behind the announcement, as other advertising-reliant tech companies were also hit hard, as reported by CNBC. Pinterest stock was down nearly 25%, and Roku Inc. shares were down 17% during the first half of the trading day.  

 

Contact Heather Bell at [email protected] 

Find your next ETF

Reset All