Snapchat developer’s profit warning sends social media stocks tumbling

Snap Inc's shares fall nearly 40% in early trading as fears grow over global downturn

A profit warning from Snapchat's developer has sent the company's shares crashing nearly 40% in early trading, triggering the latest in a series of stock market routs that has wiped billions from the value of social media companies amid fears their revenues will be hit by a global economic downturn.

Since we issued guidance on 21 April 2022, the macroeconomic environment has deteriorated further and faster than anticipated," the company said in an SEC filing published on Monday evening. Snap said it now expected second-quarter revenue and earnings below its guidance range, and told staff it would slow the hiring of new recruits.