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Snap (SNAP) late Monday lowered an outlook it initially issued April 21, saying the macroeconomic environment has deteriorated further and faster than anticipated. Snap stock crashed on the news.
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“We believe it is likely that we will report revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) below the low end of our Q2 2022 guidance range,” Snap said in a written statement.
Snap stock plummeted 30% to 15.80 during after-hours trading on the stock market today. Snap currently has about 332 million users of its smartphone app, called Snapchat.
Like other tech companies, Snap is facing rising inflation and interest rates and supply-chain shortage. There’s also a negative impact from the war in Ukraine.
Snap Stock: Misses On Top And Bottom Lines
Snap reported first-quarter results on April 21 that showed a small miss on the top and bottom lines.
“The first quarter of 2022 proved more challenging than we had expected,” Snap Chief Executive Evan Spiegel said in written remarks with the company’s earnings release.
“While our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time,” Spiegel said.
“We remain excited about the long-term opportunity to grow our business,” the company said. “Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.”
Snap stock is down more than 50% for the year, as of Monday’s close.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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