Snap’s warning of a weaker outlook sends ripples through tech stocks
More bad news ahead? Snap could be the canary in the coal mine for the broader internet sector.
An unexpected warning about the deteriorating economy by Snap Inc. Chief Executive Evan Spiegel rippled through internet and social-media stocks late Monday, potentially ruining the market’s comeback attempt from earlier in the day.
After the market closed with strong gains Monday, Spiegel spoke at a JP Morgan technology conference, and the company stated in a regulatory filing that its second-quarter earnings would come in below its prior estimates. At the conference, Spiegel said the economy has ”definitely deteriorated further and faster” than Snap SNAP, -3.40% had expected when it gave its forecast during its earnings call last month. He added that the Snapchat parent is slowing its hiring pace for the year and looking for ways to cut costs.
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