Snap surprise disclosure that its second-quarter revenue and profit will be lower than expected sent its shares plunging and sparked debate over whether the social-media company’s woes signal a broader slowdown in the online-ad market.
During a presentation at an investment conference, Snap Chief Executive Evan Spiegel said “the macroeconomic environment has definitely deteriorated further and faster than we expected.” In a filing, Snap said it would miss the low end of its target for 20% to 25% year-over-year revenue growth, and would fail to reach its target for adjusted operating earnings. Snap shares fell 43% on Tuesday, closing at $12.79.
