Binding an unexpected revelation that its second quarter revenue and profits will be lower than expected its shares have fallen in price and sparked debate over whether social media campaigns are signaling a wider slowdown online advertising market.
During the presentation at the investment conference, the CEO of Snap Evan Spiegel said “the macroeconomic environment has definitely deteriorated further and faster than we expected.” In a statement, Snap said it would not reach the lower limit of its revenue growth target of 20-25% year on year and would not reach its adjusted operating profit target. On Tuesday, shares of Snap fell 43% to close at $ 12.79.
