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Snap Stock Falls After It Warns of Lower Sales

Shares in Snap are under sever pressure on the market!

The company behind the Snapchat app, is coming under pressure Wednesday after it warned that sales are likely to decline in the current quarter.

Snap stock recently stood 13% lower in morning trading, at about $10.

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FactSet chart on Snap stock

The company also reported a wider net loss for the last quarter than Wall Street was expecting, of $288 million. For the same period a year earlier, Snap had posted its first quarterly profit.

The shift reflects a tougher environment for social-media companies dependent on digital-ad revenue, as advertising budgets shrink amid the economic slowdown. Many tech stocks have also fallen out of favor due to rising interest rates.

As of Tuesday’s close, Snap shares had fallen about 65% over the past year.