S.Nap stock totally rolled over the cliff on Monday evening, and the reason for this polymer is probably that Snap may not be the last tech company to see its shares go so spectacularly. Splat The next few months.
Less than three weeks after the second quarter guidance was issued, Snap is now revising those figures, saying it expects both sales and profits to be lower than initial estimates. This is responsible for a “macroeconomic environment” situation [that] It has deteriorated more and faster than expected, ”the company said In a new SEC filing.
Investors, already shaken by the fall in equity for the week, rushed to dump the stock in the next hour of trading. Snap down more than 30% to about. 15.80, a fatal sign for stocks. At such a price, it means that the company has given up almost all the profits won by the epidemic, at a time when users are turning to apps like Snapchat to pass the time, improving the fortunes of Snap and other competitors.
Two narratives are clear in the stock’s Wile E. Coyote Imitation, And let’s talk about them separately. There is a macro, which is arguably the most important. Snap is not the only company that relies on digital advertising dollars to replenish its bank accounts – far from it, of course. Does everything from alphabet to meta. Snap’s warning about revenue and profits should be seen in the most explicit way: an indicator that these companies will fight the second quarter and we will see how bad it is for them when we report these figures in July and August. And after Snap’s statement, the indicator alarm flashes neon red, like the same shadow, an illuminated exit sign.
Which is a directional signal for investors across technology on Monday. Meta shares fell 7%, Alphabet’s 3.6% and Pinterest’s 11.9% in after-hours. And, yes, that’s right you can now become known as a Lord of the Rings. More Twitter stock slides, hungry Elon Musk will get his price back for the company. (If you live under a rock – and, fortunately, in some real sense you’re lucky – you probably don’t know the mask. Offer শেয়ার 54.20 per share Recently April 14 for Twitter. It now trades at $ 36.45.) Instead, if Twitter refuses to renegotiate and the mask goes away, Which remains entirely a possibility, A fraction of what Mask said in a medium to severely depressed market for a share price ad to come out of the Twitter takeover discussion. You could metaphorically call such a scene “out of the frying pan, into the fire.”
Even as marketers’ appetite for advertising dwindles, many big tech companies are set to make a comeback যদি even if their shares hit something like Monday, in the next few months, and in recent weeks. What would be best is that companies cut off lots of cash and sporting fat profits. These two components provide a lot of cushions in bearish times and give those businesses the ability to buy cheap companies and get the first crack of talent.
To move on to our second, snap-specific narrative, consider that Snap is a company that makes no profit at all. So it will probably hit harder (and longer) than Meta, which also has an ad-challenged revenue model but made লাভ 39.4 billion last year. (At that point, Snap Missing $ 488 million.) In addition to the larger economic trends, Snap is debating Apple’s iPhone software changes that have forced Snap and other businesses to rethink their digital advertising business and have already disrupted marketing budgets. (Apple is preventing users from tracking their applications. Snap and its advertisers relied on this data for targeted advertising.) It’s already heavy:HeavilyকেSnap stock for the last few months. Just last fall, Snap shares were at record highs, over $ 80.
By becoming one of the first companies to talk about worse than expected second quarters, Snap hopes to come out on top and possibly save itself from a more sharp fall in its stock over the next few months. Or even more pain when its peers begin to understand how bad it has become for them. Wall Street and institutional investors do not like surprises in the earnings season and the early disclosure of statistics tries to avoid such a fate.
“There’s a lot to deal with today in the macro environment,” said CEO Evan Spiegel It is known Monday at a JPMorgan Chase conference. How well Snap and others navigate through those headwinds, and the clarity they provide to Wall Street and other investors about their problems, will indicate who else will cross the line and how long it will take for Snap to rise again.