Snap Inc. tumbled as much as 40%, dipping below its initial public offering price after the social media company cut its revenue and profit forecasts as it struggles with a wide range of macroeconomic issues.
Snap marked its biggest intraday decline since it went public in March 2017, falling to as low as $13.55. The company was on track to lose $15 billion in market capitalization, while shares of major online advertisers and social-media firms were set to lose a combined $200 billion in value from the rout.
Meta Platforms, Pinterest, Twitter and Google-parent Alphabet were all down between 7% and 24%. Snap shares were trading at $13.3, lower than their 2017 IPO price of $17. Snap said it was expecting to miss quarterly revenue and profit targets set just a month earlier and would have to slow hiring and lower spending.
Analysts said Snap's outlook for core profit suggested expenses will outpace its revenue growth, given headcount was up 52% in the prior quarter. Snap will add 500 roles before the end of the year, on top of 900 jobs already offered this year.
