Snap stock

Snap Inc. stock fell more than 20% in the extended session Monday after the Snapchat parent said it likely will miss quarterly estimates as the economy has.

Still, 2022 remains “a significant investment year,” the company said in an internal memo, the Journal reported, and it still plans on adding 500 more employees by year’s end. “We remain excited about the long-term opportunity to grow our business,” the company said. As a result of the macroeconomic conditions, “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 the filing.

The social media company issued a profit warning that sent ripples across Wall Street.

He pointed out that while the outlook is disappointing, he expects the situation to be temporary, according to The Fly. He cited the company's strong fundamentals and the increasing adoption of its first-party data measurement by advertisers. Management went on to say that the company remains "excited" about the "long-term opportunity" ahead. The were a raft of outlook adjustments, as no fewer than a dozen of Wall Street's finest lowered their price targets on Snap.

Shares for Snap were down more than 25% in after-hours trading Monday after the company warned investors of slowed growth in the months ahead.

- "We will continue to hire new team members, including recruiting for open roles," the memo said. - Snap will also continue to backfill existing positions that become available as a result of attrition "if those roles remain a high priority for our teams," Spiegel added. As a result of the slowed growth, the company plans to slow hiring for the remainder of the year, according to a note sent to employees by Spiegel and obtained by Axios. The note was first reported by CNBC.

The CEO blamed the economy for what is set to be the tech company's worst day ever.

Other social media companies also suffered a similar blow as Snap’s warning caused their shares to take a hit as well. Snap shares plunged as much as 40% on Tuesday morning, and the company announced that it would slow hiring, according to media reports. On Monday, Snap CEO and Founder Evan Spiegel had warned investors that the company wouldn’t meet its targets for revenue and earnings in the current quarter, which triggered a rush of sell-offs of its stock.

Shares of social media and some digital ad companies tumbled Tuesday after Snap issued a warning to investors that it wouldn't meet its own targets for ...

"We expect all online ad platforms to feel some impact of a significant consumer pullback," Morgan Stanley analysts said in a Tuesday note to investors. The filing also led its peers with a heavy reliance on advertising down in the afternoon. Snap's shares are down about 83% from a 52-week high in September 2021 and are off 70% year to date.