The Snapchat owner added to concerns about the US economy last night by warning that it would miss earnings forecasts for the current quarter.
Shares of Snap fell more than 30% in after-hours trading on Wall Street as the social media platform said the macroeconomic environment had “deteriorated faster than anticipated”. Facebook-owned Meta Platforms fell 7% and Twitter 4%.
In the UK, the latest public sector net borrowing figure was £18.6 billion, the fourth highest for April since records began in 1993, but down from £5.6 billion a year earlier.
Snap shares down over 30%, FTSE 100 opens lower
A rebound is set to be short-lived for US markets after social media platform Snap warned last night that it would miss guidance for its second-quarter results.
Shares of the Snapchat owner fell more than 30% in after-hours trading, while the meta platform, which owns Facebook, was down 7% and Twitter fell 4%. The Nasdaq, which gained 1.6% on Monday, is forecast to lose 1.2%.
Snap said: “The macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted earnings below the low end of our Q2 guidance range. Excited about the long-term opportunity to grow.”
US advertisers’ warnings add to ongoing concerns over the health of the world’s largest economy, with weak demand outlook weighing on Asian markets and pushing Brent crude down 1.2% to $112 a barrel.
CMC Markets has forecast a decline of 53 points for the FTSE 100 Index to open at 7,460, which opened with a gain of 123 points yesterday.
Credit: www.standard.co.uk /