Snap stock falls 20% after earnings miss estimates

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Snap stock falls 20% after earnings miss estimates

Snap Inc. stock fell more than 20% in the extended session Monday after the Snapchat parent said it likely won't miss quarterly estimates as the economy has deteriorated further and faster than anticipated. Snap SNAP said it was likely to report revenue and adjusted EBITDA below the low end of its second quarter guidance in a filing.

The second quarter of 2021 revenue was $982 million, and analysts polled by FactSet expect second quarter 2022 revenue to be $1.2 billion. The company said in the filing that it is likely that we will report revenue and adjusted EBITDA below the low end of our Q 2 2022 guidance range because of the macroeconomic conditions. The company said that we are excited about the opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement on Snapchat, and we continue to see opportunities to grow our average revenue per user over the long term. Snap's shares ended up down 3.4%, according to the regular trading day. The stock has lost 52% this year, compared with a decline of around 17% for the S&P 500 index SPX.