Snap plunges 35pc after results as US stocks open mixed

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NEW YORK, July 22 — Snap shares sank more than 30 percent early Friday following disappointing results as US stocks were mixed in the final session of a positive trading...

NEW YORK, July 22 — Snap shares sank more than 30 percent early Friday following disappointing results as US stocks were mixed in the final session of a positive trading week.

About 30 minutes into trading, Snapchat's parent company was down 35.4 percent as it pointed to a punishing confluence of increased competition, slowing growth of its revenue,"upended" advertising industry standards and macroeconomic woes in reporting that its quarterly loss nearly tripled to US$422 million.

Stocks have risen the last three sessions, generating hopes that the market may have pivoted after a bruising first half of 2022. But analysts caution there are still several key earnings reports to come, as well as next week's Federal Reserve meeting and influential economic releases such as a reading of second-quarter US growth.The broad-based S&P 500 shed 0.1 percent to 3,994.13, while the tech-rich Nasdaq Composite Index fell 0.4 percent to 12,009.75.

Among other companies reporting results, American Express gained 4.2 percent and Schlumberger won 6.0 percent, while Mattel dropped 2.4 percent. — AFP

 

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