Snap stock fell after the company lowered its earnings and revenue expectations for the June quarter, citing a rapidly slowing economy.
“The macroeconomic environment has deteriorated faster than expected,” the company said. in a filing on Monday. “As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range.”
Snap (ticker: Snap) fell more than 40% on Tuesday to $13.41, according to Dow Jones market data, the social media company’s biggest drop on record. If it ends the day at that level, it will be its lowest level since April 21, 2020, when the shares closed at $12.44.
When Snap reported its first-quarter earnings results last month, the company said it expected 20% to 25% year-over-year growth in its current-quarter revenue, compared with $0 and $50. Guided by adjusted EBITDA between . million.
Other technology companies with digital ad exposure collapsed hours later in response to Snap’s news. Meta Platform (FB) fell 7%, while Pinterest (Pin) stock fell 13.2% and Twitter (TWTR) fell 3.7%.
Earlier this month, Twitter (TWTR) revealed that it had fired two senior executives, halted recruitment for most roles, and planned to reduce cloud computing spending.
Write to Tae Kim at [email protected]
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