Snap

Social media company's shares plunge after it says conditions have 'deteriorated further and faster than anticipated'

Snap Inc said the economy had worsened faster than expected in the last month and the social media company slashed its quarterly forecast, triggering an ...

Since late April, "the macroeconomic environment has deteriorated further and faster than anticipated. Shares of Snap ( SNAP) dropped 3.6% and Amazon ( AMZN)

Shares of social media and some digital ad companies tumbled Tuesday after Snap issued a warning to investors that it wouldn't meet its own targets for ...

"We expect all online ad platforms to feel some impact of a significant consumer pullback," Morgan Stanley analysts said in a Tuesday note to investors. The filing also led its peers with a heavy reliance on advertising down in the afternoon. Snap's shares are down about 83% from a 52-week high in September 2021 and are off 70% year to date.

The stock is giving back strong gains from the previous session. It appears a profit warning from Snap is shaking the entire tech sector.

The Wall Street Journal report meanwhile reported that the company had told some manufacturers it wanted to increase production outside of China in... - Print Article - Order Reprints

Shares of Snap (SNAP) plunged nearly 40% in early trading Tuesday after Snap CEO Evan Spiegel told employees that the company would significantly slow ...

He said that Snap expects to report revenue below the lower end of guidance it gave investors. It said then that it expected up to 25% growth in revenue. In April, Snap reported first quarter earnings that missed analyst estimates for sales and profits.

In notes following Snap's disclosure, analysts pointed to a macroeconomic story that's playing out across the digital ad market.

"Snap's warning is clearly a negative for all of the ad-supported peers." And Facebook already warned investors last month that revenue in the second quarter could decline from a year earlier, a stark admission from a company that had never seen anything below double-digit growth before this year. "Macro headwinds likely extend to all of digital advertising," JMP Securities analysts wrote in a note following Snap's disclosure.

“Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact ...

“The macroeconomic environment has deteriorated further and faster than anticipated,” Snap said in a filing. Twitter recently announced a hiring freeze and other cost cutting measures to try and save cash. Both Meta and Uber have cut back on the speed of hiring, after warning about the increasing cost of doing business. The platforms are all competing for ad dollars at a challenging time. The company’s second-quarter forecast, for 20% to 25% year-over-year revenue growth, was already below analysts’ estimates. Snap will add 500 roles before the end of the year, on top of 900 jobs already offered this year.

The CNBC Investing Club gives investors a behind-the-scenes look at how Jim Cramer manages an investment portfolio so you can manage your own money and build ...

Honeywell (HON) backs Q2 and full year guide at the Wolfe Research Global Transportation and Industrials Conference. (Jim Cramer's Charitable Trust is long FB, GOOGL and HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. More signs of slowing hiring in tech: Uber (UBER) is freezing most hiring, but no layoffs are planned, according to Insider. M & A update: Still waiting for more news on Broadcom (AVGO) and VMware (VMW) talks in tech. In the meantime, in health care — diabetes continuous glucose monitoring maker Dexcom (DXCM) reportedly in talks to buy Insulet (PODD). Roblox (RBLX) downgraded to neutral by Atlantic, which believes the company is taking the right approach on monetization and sees easy comps ahead. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. He added that revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) are likely to come in below the low end of the guidance range. Citi said Netflix (NFLX) does not have a natural investor base — doesn't have the subscriber adds to please growth investors and not enough free cash flow for value-oriented investors. What the Club is watching — May 24, 2022 Snap (SNAP) shares crater in the premarket after company said it will miss its revenue and adjusted earnings target for the current quarter, slow hiring growth. One day there is a bounce and the next day a bad earnings print (like Walmart/Target last week) or a pre-announcement (late Monday Snap) suggests an entire group's earnings estimates may be too high. You have to stick with the best of the best. Snowflake (SNOW) upgraded to buy at Rosenblatt into the company's fiscal first-quarter results. This is why people find it hard to trust rallies in the market. Jefferies lowers 2022 and 2023 revenue estimates for Facebook-parent Meta Platforms (FB), Alphabet 's (GOOGL) Google, Snap, Twitter (TWTR), Trade Desk (TTD), and others by an average of 3% and 6%, respectively.

Like the disappearing “snaps” that users post on its social-media app, Snap Inc.'s Evan Spiegel and Bobby Murphy just saw a big chunk of their fortunes ...

A profit and revenue warning from Snap sent technology shares and the broader market tumbling after a strong rally Monday.

The stock market was falling sharply Tuesday, after Snap blamed the economy when it lowered its sales and profit guidance for the current quarter, rekindling worries about a recession. - Print Article - Order Reprints

Snap CEO Evan Spiegel said “the macroeconomic environment has deteriorated further and faster than anticipated.” Then his company lost 40% of its value.

“The recession odds are rising, and more headwinds are building. Horneman noted that consumers are turning to credit and depleting their savings in order to maintain an above annual average pace of discretionary spending. “Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. Consumers are spending more on necessities (e.g., food) and less on discretionary merchandise,” Megan Horneman, chief investment officer at Verdence Capital Advisors, told Fortune via email. With so much talk of a looming recession, it struck a nerve. Tech stocks had another terrible showing on Tuesday, but it wasn’t because of the release of new economic data or a bad earnings report.

Snap Inc. plunged 43%, posting its biggest-ever one-day drop and dragging down social media peers, after the company cut its revenue and profit forecasts, ...

The parent company of Snapchat warned that it would miss its own revenue forecast yesterday, sending shockwaves through advertising-dependent platforms.

“Hand-wringing over prospects for a U.S. recession beginning in the next year or two has become increasingly fevered,” he wrote. “Advertising is one of the first things to be cut,” he says. “It’s a fragile moment, and bad news is punished pretty brutally in the market.” “Forrester data shows that between 2021 and 2022, the only major social media platform that saw material gains in weekly usage among U.S. online adults is TikTok—from 18% in 2021 to 23% this year,” according to market research company Forrester. “Facebook dropped 3 percentage points and Snapchat and Instagram remained relatively flat year-over-year across all online adults.” “There will be a shakeout,” says Mark DiMassimo, founder and creative chief of DiGo, a New York advertising agency. DiMassimo agrees, saying that most of the advertisers on Snap are packaged goods, beauty, or fashion brands.

A profit warning from the parent company of social platform Snapchat hit Meta, Pinterest, Twitter, Alphabet and even Amazon.

- Kohl's:Kohl's coupon - 30% off for Rewards members You may cancel your subscription at anytime by calling Customer Service. Nearly every major player in the sector reported a notable slowdown in advertising revenue growth during the recent first-quarter earnings season.

Snap Inc shares plunged more than 40% and sparked a sector-wide sell-off on Tuesday (May 24) after a profit warning from the Snapchat parent signalled tough ...

"There's a lot to deal with in the macro environment today," chief executive officer Evan Spiegel said at a tech conference on Monday. Snap and its peers including Meta are in the path of a storm that also includes increasing competition from TikTok for users' attention and ad dollars, said Jasmine Enberg, a principal analyst at research firm Insider Intelligence. Snap said on Monday it was expecting to miss quarterly revenue and profit targets set just a month earlier and would have to slow hiring and lower spending.

The CNBC Investing Club believes members should not join the parade of sellers who are dumping Meta or Alphabet based on Snap's news alone.

Snap CEO Evan Spiegel said in an internal memo that it will reprioritise its investments, including slowing down its hiring for unopened roles for the rest ...

At the same time, Snap is also evaluating the rest of its 2022 budgets and leaders have been requested to review spending to find additional cost savings. However, it reported a net loss of US$360 million, compared to US$287 million during the same period last year. Nonetheless, Snap said in the filing that it remains excited about the long-term opportunity to grow its business. The adtech industry was also affected by Snap's warning as shares of the Trade Desk dipped 18.51%, CNBC said. According to media reports including the Financial Times, shares for Meta and Alphabet fell 9% and 6% respectively. This warning impacted the shares of other tech giants too.