June 28, 2022

Herald of Fashion

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Snap stock drops 30% as the company cuts its earnings forecast

Snap stock drops 30% as the company cuts its earnings forecast

Since late April, “the macroeconomic environment has deteriorated more and faster than expected. As a result, we believe that we will likely report EBITDA below the lower bound of our guidance range for the second quarter of 2022.” . US Securities Depository.

shares Explode, Explode (Explode, Explode) decreased 31% the alphabet (The Google) decreased 3.6% and Amazon (AMZN) It fell 2.2%. Nasdaq futures also fell, as traders blamed Snap.

US stocks closed higher on Monday, led by gains from banks and technology, but the rally comes after the longest series of weekly declines on Wall Street since the dotcom crash more than 20 years ago, and many investors remain on edge.

Snap CEO Evan Spiegel told employees in a note seen by Reuters that the company would slow hiring for this year and set out an extensive list of problems.

“Like many businesses, we continue to face rising inflation and interest rates, supply chain shortages and employment disruptions, platform policy changes, the impact of the war in Ukraine, and more,” he wrote.

Last month, Snap forecast second-quarter revenue growth of 20% to 25% over the previous year.

The news comes after statements by companies including Uber (Uber) And the owner of Facebook ID pads (FB) Earlier this month they would rein in costs and hiring.

In the memo, Spiegel said Snap would evaluate the rest of this year’s budget and “leaders were asked to review spending to find additional cost savings.”

He said some planned hiring will be pushed back to next year, although the company still expects to hire more than 500 people by the end of this year.

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