Snap’s stock value plummeted 25% within hours. The company that owns Snapchat unveiled its results for the quarter just ended on Thursday.
Snap’s stock value plummeted 25% within hours. On Thursday, the company that owns Snapchat unveiled its results for the quarter just ended, announcing that – like many other companies – it would be cutting hiring over the next few months. More generally, the company expects a sharp slowdown in growth.
“We are not satisfied with the results we are achieving, regardless of the current circumstances,” reads a letter sent to investors.
Snap’s shares have lost roughly 66% of their value since the start of 2022
Snap’s shares have lost roughly 66% of their value since the start of 2022, a trend common to many other tech companies, such as Netflix. In May, Snap executives had already anticipated to investors that the company would not be able to meet its previously announced goals. The announcement caused a disastrous stock market crash, with the stock losing 43% of its value.
Like other companies, Snap is also pessimistic about the future of the economy , anticipating the arrival of a recession that could hit the whole world hard. “The health of the economy is deteriorating faster than could be imagined,” company executives explained.
Among other things, Snap’s advertising platform is not performing as explained. Demand from advertisers is lower than the company and its investors imagined. Snap also cites fierce competition from other platforms, starting with TikTok, and recent iOS updates that have made user profiling more difficult.
- Snap shares plunge 25% on disappointing second-quarter results and plans to slow hiring (cnbc.com)