Why Snap Inc share price is crashing today

Snapchat stock (Snap) is crashing after it lost 41.72 % in stock price value today and the company already shaved some share prices yesterday when the news broke that Snap will not meet earning guidance.

The 40% fall in Snap’s share price means Snapchat is on a pace for the worst trading day ever. “Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated,” Snap said in an SEC filing. The company said in a statement yesterday and the bear traders pounced on it.

Snap stock is down by over 83% from its 52-weeks high and it’s down 70% year to date. “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. “Advertising is cyclical.”

Snap stock is now selling for just $13.1 per share, it was selling for as high as $83.34 per share before the economic downturn. And now Snap wants to cut jobs and lay people off.