Shares of Snap Inc. (NYSE: SNAP) surges 3.10% to $10.29 in pre-market session on Monday as the App for ephemeral messaging according to a document obtained by Reuters on Thursday, Snap had employee data exposed due to a hack at a third-party document analysis service.
According to a letter sent to a former employee on September 13, Snap was informed by document analysis business Elevate that an unauthorized individual had accessed certain of Elevate’s computer systems in March 2022. That employee was informed that their name, address, job history, and remuneration information might have been included in the impacted files.
Snap’s partnership with Elevate was terminated, according to the letter.
A Snap representative stated only that a data breach at an unidentified third-party vendor “exposed personal information of some of our current and past team members,” but that no Snapchat users were affected.
Snap stated that it has alerted anyone impacted and that it would no longer utilize the vendor for comparable services in the future. Elevate did not respond to mails seeking comment right away. Reuters was unable to identify who else got the letter or how many additional workers or former employees were harmed by the incident.
Credit Suisse analyst Stephen Ju reduced Snap Inc’s (NYSE: SNAP) price objective to $22 from $29 and maintained an Outperform rating on the stock ahead of quarterly earnings. His recent studies indicate that digital ad patterns for Q3 are improved compared to Q2.
Although several of the verticals in which Snap has the most exposure underperformed the overall online ad market during the quarter, others are still being impacted by inflation and the supply chain. As seen by his note headlined “Ongoing Tough Environment for Share Capture,” his key concerns for Snap are not necessarily in the second half of 2022, but in 2023.
The preliminary estimates for aggregate online and digital budget growth are in the mid-single digits.
He also includes explicit Snapchat+ donations, which topped 1 million members in 3Q22 and offer medium-term optionality because we do not account for incremental user adoption over the next few years.