An Outlook Snapped

Snapchat parent Snap sent shares sinking after the social media firm walked back its second-quarter outlook.

The firm said in a regulatory filing that it expected to report second-quarter revenue and adjusted earnings before interest, taxes, depreciation, and amortization below its prior outlook, which it release roughly a month ago. The company wrote:

Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range.

My Barron's colleague Tae Kim writes that Snap stock sank 23% following the release. He adds:

Last month when Snap reported its first-quarter earnings results, the company said it expected to grow its current quarter revenue in a range between 20% and 25% year-over-year, while guiding to an adjusted EBITDA of between $0 and $50 million.

Other technology companies with digital advertising exposure fell in after hours in reaction to Snap’s news. Meta Platforms ( FB ) fell 7%, while Pinterest ( PINS ) stock dropped 12% and Twitter ( TWTR ) declined 4%.

Read the rest of Tae's report here.