Snapchat shares fall.
Shares of the owner of social media platform Snapchat have fallen as it warned it faces “extremely challenging” conditions. The firm says advertisers have cut spending as they face supply chain disruptions.
Snap shares fell more than 25 percent on the New York Stock Exchange.
Shares in tech giants, including Facebook owner Meta and Google parent Alphabet, also fell on worries about economic headwinds.
After US markets closed on Thursday, Snap reported revenue of $1.11 billion for the three months to the end of June.
The company said some of its advertisers had cut spending as they faced rising costs, supply chain disruptions and labor shortages.
The firm also said that iPhone privacy changes, economic challenges and increasingly tough competition for advertisers had “significantly slowed” its revenue growth.
However, daily active users on Snapchat rose to 347 million by the end of June, beating forecasts.
She said she now aims to reduce employment, grow the advertising business and find new sources of income.
After the results, shares in major tech firms that also sell online advertising — including Meta, Alphabet, Twitter and Pinterest — lost ground in after-hours trading.
Snap’s earnings come ahead of results from bigger rivals including Twitter, which is expected to release figures later on Friday, while Alphabet is scheduled to post its latest update on Tuesday, followed by Meta on Wednesday.