Shares of Snap Inc. slumped 26.79% on Friday’s pre-market trading after reporting downbeat quarterly results.
The American camera and social media company plunged 26.79% or 4.38 points to $11.97 per share. The downturn completely reversed Wednesday’s 5.45% hike.
Accordingly, the company missed Q2 targets, slammed by a weakening economy, tightened competition from TikTok, and recent privacy changes on iPhones. Snap reported an earnings loss of $0.02, worse than the anticipated decline of $0.01.
In addition, the online platform reported revenue of $1.11 billion, missing the average market estimate of $1.14 billion.
Moreover, the firm did not provide third-quarter earnings after warning that forward-looking visibility remains incredibly challenging.
Subsequently, Snap lost almost two-thirds of its value in 2022. In May, the business said it would not meet the second-quarter guidance set the prior month. This statement triggered a 43.00% plunge in the share price.
Last September, the social media company peaked at $136.00 billion on its market capitalization. Based on after-hours pricing, the platform is now worth $20.00 billion. Snap also unveiled plans to slow hiring as it reckons with weakening revenue growth.
Snap’s earnings spark tech self-off
Snap’s latest quarter earnings sparked a sell-off in rival internet ad sellers. Facebook parent Meta Platform skidded 4.90% or 8.97 points to $174.20 per share.
At the same time, Alphabet, owner of Google, lost 2.92% or 3.34 points to $111.00 per share. Consequently, image-sharing platform Pinterest plummeted 6.40% or 1.34 points to $19.60 per share. Meanwhile, microblogging firm Twitter pared less, losing 2.48% or 0.98 points to $38.54 per share.
Moreover, Snap’s poor report hit other growth stocks. For instance, Spotify Technology slipped 1.61% or 1.86 points to $113.76 per share.
