Snap to Slow Down Hiring for the Year Following Plunge in Economy, Slashes Quarterly Forecast

Snap said the economy had worsened faster than expected in the last month and the social media company slashed its quarterly forecast, triggering an after-hours sell-off.

Since late April, “the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range,” the company said in a US securities filing.

Shares of Snap fell 31 percent, Alphabet dropped 3.6 percent, and Amazon dropped 2.2 percent. Nasdaq futures also fell, with traders blaming Snap.