Snap shares plummet by 40% down, 'worst day ever' for Snapchat

Snap shares snap in half: drops 40% and pulls other tech stocks with it -- Google, Facebook, Twitter -- Snap's 'worst day ever'

@anthony256
Published Tue, May 24 2022 11:11 AM CDT   |   Updated Tue, Jun 14 2022 2:32 AM CDT

Snap shares have fallen through the ground, dropping by a hefty 40% and dragging other tech stocks like Apple, Twitter, and Meta (the parent company of Facebook) at the same time.

Snap shares plummet by 40% down, 'worst day ever' for Snapchat 06 | TweakTown.com

The huge 40% sea of red for Snap shares means we're looking at $13.42 at the time of writing, down from ~$30 or so back on April 25. Snap's market cap has dropped, down to $21.9 billion. A recent SEC filing seems to have dragged down the share price of Snap, but there are other moving parts.

The SEC filing reads: "Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low-end of our Q2 2022 guidance range".

"We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term".

Snap Chief Executive Evan Spiegel said: "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".

In the memo, Spiegal has also said Snap would be looking at the rest of the budget for 2022, and "leaders have been asked to review spending to find additional cost savings".

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NEWS SOURCE:cnbc.com

Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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