Snap sends shares tumbling with warning on economy and earnings

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Snap Inc said the U.S. economy had worsened faster than expected in the last month and the social media company slashed its quarterly forecast, triggering an after-hours sell-off.

Since late April, "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 EBITDA below the low end of our Q2 2022 guidance range," the company said in a US securities filing.

US stocks had ended higher on Monday, led by gains from banks and tech, but the rise follows Wall Street's longest streak of weekly declines since the dotcom bust more than 20 years ago and many investors remain on edge. "Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more," he wrote.The news follows statements by companies including Uber and Facebook-owner Meta Platforms earlier this month that they would rein in costs and hiring.

 

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