snap: Snap loses $10 billion as stocks drop to 52-week low

Snap, parent company Snapchatposted a loss of almost $10 billion after its shares hit a new 52-week low due to disappointing quarterly results (Q2) amid poor outlook for the future.

The company’s shares lost almost 40% of their value on Friday after
reported a net loss of $422 million. compared to $152 million the previous year as the company cut its headcount “substantially”.

“We are facing a number of very large and very complex competitors (and) we are seeing the overall advertising pie grow at a slower pace amid counter macroeconomic factors,” CFO Derek Anderson told investors.

“Because the competition, whether it be with TikTok or any other very large and experienced player in the field, has only intensified and it is difficult to isolate the multiple factors influencing what is clearly a headwind causing a slowdown in our business,” he added. .

In May, Click announced a hiring slowdown this year. Spiegel told employees the company plans to hire 500 people this year, up from 2,000 people hired in the past 12 months, after warning investors that its earnings won’t grow as fast as expected.

Other tech giants such as Meta as well as Google also decided to slow down recruitment due to poor macroeconomic conditions.

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