Snap’s struggles also dragged down shares of Twitter, which is battling with Elon Musk over his agreement to take over the company for $44 billion. Snap is down more than 70% so far this year. But the company’s shares have plummeted more than 70% so far in 2022 and closed at $12.79 on Tuesday. Snapchat was one of many tech stocks that ballooned during the pandemic, trading as high as $83 in September. The tech-heavy Nasdaq Composite Index was down 2.4%. Roughly $100 billion in total was wiped off tech stocks Tuesday. “Once you start thinking about Google, that’s when the markets starts to sell off.” “Snap is a proxy for online advertising and when you see weakness there then you automatically think Facebook, Pinterest and Google,” said Dennis Dick, a trader at Bright Trading LLC in Las Vegas. Pinterest, meanwhile, was down a whopping 23 % at $17.30. ![]() ![]() Shares of Facebook and Instagram parent Meta plummeted 7.6% to $181.28, while Google parent Alphabet notched a 5% loss to trade around $2,119.40. Analysts expected Snap to report adjusted earnings of 8 cents a share, on revenue of. Snap’s SOS spooked investors across social media and the tech sector more broadly. The company reported adjusted earnings of 17 cents a share on revenue of 1.07 billion. “The macroeconomic environment has deteriorated further and faster than anticipated,” Snap said in a Securities and Exchange Commission filing on Monday, adding that it’s expecting lower revenue and profit for the second quarter.Ĭompanies generally pull back from advertising spending when the economy slows, translating to lower revenue for social media firms like Snap that rely on ad dollars. ![]() Shares of Snapchat’s parent nosedived 43% on Tuesday after the disappearing-photos app sounded alarm bells about a slowing economy killing digital advertising revenue. This state is the first to enact age limits, curfews for social media use in major crackdownĮlon Musk looks to develop AI rival to ‘woke’ ChatGPT: report I’m a Gen Z’er who’s not on social media apps: I’m happier and healthier for it Tennessee teacher’s Facebook post revealing why ‘kids aren’t ready for social media’ goes viral: ‘Terrifying’
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