Snap (SNAP) The stock fell 40% in the morning after lowering its second-quarter profit margin and giving a warning about the macro environment.
Shares of social media operator Snapshot’s parent company fell below its IPO price of $ 17 during its biggest intraday fall.
“Since we provided guidance on April 21, 2022, the macroeconomic environment has deteriorated even faster than expected,” Snap said. Wrote an SEC filing.
“As a result, we hope to report revenue and adjusted EBITDA below our Q2 2022 guidelines,” read the filing.
Snap hiring is expected to be slow.
“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,” CEO Ivan Spiegel wrote in a note to staff. According to Bloomberg.
Markets have been on a downward trend since the Federal Reserve announced it would tighten monetary policy to reduce inflation. Nasdaq (IXIC) Is currently down about 29%.
Growth stocks in particular have been hit hardest by high inflation and rising interest rates.
Ines is a stock reporter covering the New York Stock Exchange. Follow her on Twitter @ines_ferre
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