Snap Inc SNAP shares are trading significantly lower Tuesday morning after the company filed a Form 8-K with the U.S. Securities and Exchange Commission showing it expects to miss its previously-issued guidance.
"The macroeconomic environment has deteriorated further and faster than anticipated," Snap said in the filing. As a result, the company now expects to report second-quarter revenue and adjusted EBITDA "below the low end" of its guidance range.
During its most recent earnings report, Snap guided for second-quarter revenue growth of 20% to 25% year-over-year. The company said it expected adjusted EBITDA to be between breakeven and $50 million.
In a note to employees, CEO Evan Spiegel also said Snap will slow its pace of hiring for the remainder of the year in an effort to manage expenses.
- Keybanc analyst Justin Patterson maintained Snap with an Overweight rating and lowered the price target from $45 to $27.
- Piper Sandler analyst Thomas Champion maintained Snap with an Overweight rating and lowered the price target from $50 to $30.
- JPMorgan analyst Doug Anmuth maintained Snap with an Overweight rating and lowered the price target from $47 to $26.
- RBC Capital analyst Brad Erickson maintained Snap with a Sector Perform rating and lowered the price target from $35 to $17.
- JMP Securities analyst Andrew Boone maintained Snap with a Market Outperform rating and lowered the price target from $50 to $45.
- Rosenblatt analyst Barton Crockett maintained Snap with a Buy rating and lowered the price target from $49 to $23.
SNAP Price Action: Snap shares are making new 52-week lows on Tuesday.
The stock was down 30.7% at $15.56 at press time, according to data from Benzinga Pro.
Photo: courtesy of Snap.
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