Snap Inc's stock plummeted 5.61% in pre-market trading, extending a post-earnings decline as the company faces multiple challenges impacting investor sentiment.
The social media company reported Q1 results that fell short of market expectations, with a net loss attributable to shareholders of $88.95 million despite revenue growth of 12.15% year-over-year. The Middle East geopolitical conflict alone reduced advertising revenue by approximately $20 million to $25 million in March, while North American daily active users declined and revenue growth in the region slowed to just 2%.
Adding to the headwinds, Snap announced the termination of a $400 million partnership with AI startup Perplexity, removing a potential growth catalyst. The stock's decline notably underperformed the broader Interactive Media & Services sector, reflecting company-specific challenges beyond industry-wide weakness.
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