Snap stock price dives 11% on earnings, and 'issues are intensifying'

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Snap plunges 11% on ugly earnings and analyst warnings that 'issues are intensifying' at the social media company

Snap stock plunged 11% on Wednesday after the social media company posted it slowest rate of quarterly growth ever.

A lot companies had to slash digital advertising budgets amid a slowing economy last year, resulting in big hits for social media platforms like Snap. Snap also estimated first-quarter revenue could drop between 2% and 10% compared to the previous year. "We are concerned that Snap's issues are intensifying, as recent ad platform changes further pressure revenue growth and depth of engagement on friend stories again decreasing year over year," analyst James Heaney wrote.

 

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