Teen’s favorite social app, Snap.inc is on sharp decline as shares of the social-media company fall sharply in after-hours trading
Snap shares have fallen ferociously, from a record high set in September.
Snap Inc. issued a profit warning and said it planned to slow hiring and spending, adding to broader adjustments social-media companies are making to adapt to disruptions in the digital ad market.
*Bloomberg tweet on Snap’s internal memo
— Bloomberg (@business) May 24, 2022
Snap recently is grappling with a range of issues,
Mr. Spiegel in a memo to staff, as reported by Bloomberg said “while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.”
Shares in other social-media also slumped on the Snap announcement.
Shares in Facebook parent Meta Platforms Inc. fell more than 7% after the closing bell and Pinterest Inc.’s stock retreated more than 10%.
Snap’s moves follow those of rivals such as Twitter Inc. and Meta.
Meta this month said it would sharply slow its hiring after it more than doubled the size of its workforce since 2018.
Twitter paused hiring and are looking for cost cuts.
Other tech companies,
including Uber Technologies Inc., also said earlier this month that they would curtail spending and hiring.
Inflation also weighed on the company’s ad business with advertisers pulling back amid rising costs.