Snap (NYSE:SNAP), the "camera company" social-media platform, may not want to keep the picture of Tuesday's market action.
Snap stock fell 43% on the day, its worst single decline ever. That nearly halved a market value that had reached over $38 billion; the company's now worth just under $21 billion.
That followed a warning that shocked Wall Street: Late Monday, the company issued a filing reporting that its second-quarter earnings would reflect revenue and core profits that fell below the low end of guidance it had just issued a month prior, saying "Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated."
That sent Snap shares reeling in postmarket trading Monday, and the contagion quickly spread to digital-ad-facing peers (Meta, Google, Twitter and Pinterest) as well as ad-tech names (The Trade Desk, Magnite, PubMatic, AppLovin, Digital Turbine, ironSource) - and even the broader market, as a drop in index futures was blamed by many on Snap's economic warning.
Those related companies also mainly finished Tuesday with outsized losses: Meta (FB) -7.6%; Alphabet (GOOG) -5.1%; (GOOGL) -5%; Twitter (TWTR) -5.6%; Pinterest (PINS) -23.6%; The Trade Desk (TTD) -18.5%; Magnite (MGNI) -13.2%; PubMatic (PUBM) -15.9%; AppLovin (APP) -12.8%; Digital Turbine (APPS) -13.2%; ironSource (IS) -7.7%.
Analysts hustled to slash their price targets Tuesday as Snap's warning rippled through the market.
The Snap crash also hit ETFs focused on social media and the metaverse.