The collapse in Snap’s share spread to other internet and advertising stocks, with Meta Platforms Inc falling 9.6 percent.
Snap Inc. plunged as much as 40% Tuesday morning, dipping below its initial public offering price after the social media company cut its revenue and profit forecasts as it grapples with a wide range of macroeconomic issues.
“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”, Chief Executive Officer Evan Spiegel said in a note to staff on Monday. The company will also slow hiring.
Snap marked its biggest intraday decline since it went public in March 2017, falling to as low as $13.55. The collapse in Snap’s share spread to other internet and advertising stocks, with Meta Platforms Inc. falling 9.6%. Major advertising houses also dropped, with WPP Plc dropping 3.9% in London.
In total, social media stocks were on course to shed more than $100 billion in market value following Snap’s announcement....
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