Snap shares fall after cutting forecast, shock spreads to rivals

Social media stocks were on course to shed more than $100 billion in market value following Snap's announcement

Snap Inc. cut its revenue and profit forecasts below the low end of its previous guidance, sending shares plunging as much as 31% and pushing other social media stocks down.

The company will also slow hiring, Chief Executive Officer Evan Spiegel said in a note to staff. “Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more,” he wrote in the memo obtained by Bloomberg.

The collapse in Snap’s share spread to other internet and advertising stocks, with Meta Platforms Inc. falling