Perhaps the social media application, Snapchat is not popular in Malaysia, but the application is among the social media platforms equivalent to Facebook, Twitter and Instagram in the United States (US).
As one of the popular social media in the category of tech giants, Snap Inc was also hit by a fall in technology -themed stocks that hit the market.
Snap shares not only plunged 30% in Monday’s trading session but the company also failed to meet its revenue target and had to readjust earnings in its current quarter.
According to Chief Executive Officer (CEO) Evan Spiegel, Snap’s first quarter (1Q) earnings report failed to meet Wall Street expectations and surpassed the company’s set revenue growth forecast of 20% to 25%.
That string, Snap had to readjust the company’s earnings including slowing hiring until the end of the year in an effort to manage expenses.
Even so, Spiegel insists that Snap will still hire another 500 new employees before the end of the year only at a slower rate than before at 2,000 new employees in 12 months.
Among the factors to the failure of the 1Q Snap earnings report that Spiegal identified were rising inflation, rising interest rates, supply shortages, labor issues, changes in Apple’s securities policy and the impact of the war in Ukraine.
During the close of Monday’s trading session, Snap shares were seen falling 50% for the year.
Moreover, the downward trend in tech stocks was seen continuing in Monday’s trading session as Facebook owned by Meta Platform Inc fell 7%, Twitter Inc slipped 4%, Pinterest fell 12%and Google’s Alphabet lost 3%.
