• by Karlene Lukovitz  @KLmarketdaily, May 24, 2022

Snap’s shares dropped 39% Tuesday morning after CEO Evan Speigel on Monday filed an 8-K with the Securities and Exchange Commission warning that Snap is likely to miss its own guidance for revenue and adjusted earnings in Q2.

Snap also told employees that it would slow hiring through the end of the year.

The news also sent the stocks of other advertising-dependent platforms and ad-tech companies down.

Meta’s shares were down 9%, Roku’s 14%, Pinterest’s 21%, Google’s 6%, and Twitter’s 2%, reported CNBC. In addition, The Trade Desk’s stock was down 21%, Magnite’s 11% and PubMatic’s more than 11%.

In a note this morning, Morgan Stanley analysts said that they expect all online platforms “to feel some impact” from a potentially significant “consumer pullback” resulting from inflation, supply-chain problems and other factors.

Snap’s 8-K states that it is likely to report Q2 revenue and adjusted EBITDA below the low end of its guidance range — which called for a 20% to 25% year-over-year increase, already below analysts’ 28% expectation. EBITDA was pegged to fall between breakeven and $50 million.

“We remain excited about the long-term opportunity to grow our business,” the 8-K statement adds. “Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.

Snap’s first-quarter earnings also missed analysts’ sales and profit projections, and its shares are now down more than 70% year-to-date and down 83% from its 52-week high in September 2021.