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Snap stock is fading – TechCrunch


Investors in social media company Snap are in shock this afternoon as the stock suffered a slump following the release of second quarter results yesterday. The share price is down nearly 40% for the day, at the time of writing, as investors revise their expectations for the stock’s future performance.

After closing just below $16.50 yesterday, their stock is now hovering below $10. The stock has fallen nearly 90% from its all-time high of $83.34 in September last year, wiping out tens of billions of market capitalization value and falling harder than beleaguered cryptocurrencies and volatile like Bitcoin.

How did Snap manage to scare off investors so badly? As we reported yesterday, the company not only missed revenue guidance but declined to provide guidance on future quarters due to “uncertainties in the operating environment.”

Snap was on the rise last year, benefiting from an earnings multiple that many analysts saw as unsustainable, but others saw as a signal of high expectations for the company relative to its competitors.

Many tech stocks suffered massive stock price haircuts amid a massive sell-off in tech stocks, but Snap has now fallen far more in percentage terms than fellow social media companies including Twitter and Meta.

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