Snap Inc’s profit warning sees tech stocks tumble $233b as the war for ad dollars rages on

May 25, 2022 9:44

Snap Inc. faced a rough day at the office, as a profit warning issued on Tuesday sent the company’s share price crashing almost 40%. The Snap fall incited a seismic total decline of $US165 billion (A$233b) in share prices across social media stocks, with Facebook parent company Meta suffering a $53 billion plunge in market value after Snap’s announcement.

Snap, which has become dependent on digital ads, saw 43% of its market value wiped out after the release of its profit warning.

Snap’s Q1 2022 financial highlights showed revenue increased 38% to US$1,063 million (A$ 1.44 million), compared to the prior year. At the time of its Q1 results release, market capitalisation of Snap was at US$47.786 billion (A$64.942 billion), and the share price sat at $29.42 USD. Today, that share price has plunged to $12.79 USD.

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Seja Al Zaidi

Seja Al Zaidi was Mumbrella’s finance reporter, spearheading the publication’s coverage on the financials of advertising, marketing and media sectors.

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