- This was because the company “substantially” cut back on hiring.
- Snap is dealing with increasing prices and interest rates.
- Its shares hit a new 52-week low on Friday.
Snap, the company that owns Snapchat, lost almost $10 billion when its shares hit a new 52-week low due to disappointing Q2 results and bad predictions for the future.
On Friday, the company’s stock lost almost 40% of its value after it reported a net loss of $422 million, up from $152 million the year before. This was because the company “substantially” cut back on hiring.
“We face a number of very large and very sophisticated competitors (and) we’re seeing the overall advertising pie grow at a slower rate amid the macro headwinds,” CFO Derek Anderson told investors.
“As competition has only escalated, whether with TikTok or any of the other very big, smart competitors in this sector,” he continued, “it’s difficult to isolate the multiple things here influencing what’s obviously a headwind causing slowdown in our company.”
Snap said in May that it will reduce recruiting this year. Spiegel informed staff that the business planned to add 500 people this year, up from 2,000 in the previous year, despite warning investors that sales will not expand as quickly as projected.
Snap, like many other internet businesses, is dealing with increasing prices and interest rates, supply chain constraints and labour disruptions, platform policy changes, the effect of the Ukraine crisis, and other challenges.
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