Snap The SNAP cut its outlook late on Monday, saying it had initially issued an April 21 statement, saying the macroeconomic environment had deteriorated more and faster than expected. Snap stock crashed in the news.
“We believe we will report revenue and consistent EBITDA (earnings before interest, tax, depreciation and repayment) below the lower end of our Q2 2022 guideline range,” Snap said in a written statement.
Snap stock fell 30% to 15.80 during after-hours trading on the stock market today. Snap currently has about 332 million users whose smartphone app is known as Snapchat.
Like other technology companies, Snap is experiencing rising inflation and interest rates and supply-chain deficits. The war in Ukraine also has negative effects.
Snap stock: Missed top and bottom line
Snap April 21 reported first quarter results showing a small miss on the top and bottom lines.
“The first quarter of 2022 has proven to be more challenging than we expected,” Snap chief executive Evan Spiegel said in a written statement with the company’s earnings disclosure.
“Although our income continues to grow year after year, it is growing faster than we expected at this time,” Spiegel said.
“We are excited about the long-term opportunity to grow our business,” the company said. “Our community continues to grow, and we’re seeing strong engagement across Snapchat, and a significant opportunity to grow our average revenue per user in the long run.”
As of Monday’s close, Snap stock has fallen more than 50% for the year.
Please follow Brian Degan on Twitter @IBD_BDeagon Learn more about technical stocks, analysis and financial markets.
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