"In 2021, Apple tweaked its privacy rules to make it harder for app developers to track their users across the internet. This created a massive problem for social media platforms, because without access to users' browsing data, they could no longer target them accurately for advertising purposes. Millions of people in developed markets like the U.S. use Apple's iPhone to access social media, so this was a gigantic sea change."
"Social media giant Meta Platforms, which owns Facebook and Instagram, innovated its way around this challenge. Snapchat parent company Snap (NYSE: SNAP), on the other hand, is still lagging behind, but some of its new tools have successfully boosted conversions for advertisers recently, so its fortunes could be set to turn for the better."
"Snap stock remains 91% below its 2021 record high, and it's trading at a rock-bottom valuation. Given some of the company's recent momentum and Snapchat's consistently growing user base, here's why this could be a great opportunity for investors heading into 2026."
Apple's 2021 privacy changes limited app developers' ability to track users across the internet, removing browsing data used for ad targeting. Social media platforms lost targeting accuracy, significantly hurting advertising effectiveness. Meta Platforms developed workarounds to restore ad performance. Snap has lagged but introduced new advertising tools that recently boosted conversions for advertisers. Snapchat's user base continues to grow. Snap's stock sits roughly 91% below its 2021 peak and trades at a low valuation. Improved ad performance combined with a rock-bottom stock price could present a buying opportunity heading into 2026.
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