Shares in Snap, an American camera, and social media company, plunged 30 percent in extended trading on Monday after CEO Evan Spiegel warned that the company will miss its targets for revenue and adjusted earnings in the current quarter.
The social media company will also slow hiring through the end of the year as it looks to manage expenses.
“Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month,” Spiegel wrote in the note.
In April, Snap reported first-quarter earnings that missed Wall Street expectations for sales and profit.
At the time, the company said it expected between 20 percent and 25 percent year-over-year growth in revenue.
Snap, the famed maker of the Snapchat app is facing rising inflation and interest rates, supply chain shortages, labor disruptions, and platform policy changes like Apple’s iPhone privacy feature.
There’s also a negative impact coming from the war in Ukraine.
Monday, Snap shares were down over 50 percent for the year, compared to the 17 percent drop for the S&P 500. After hours, the stock dropped 28 percent to $16.15.
Should it fall more than 26.6 percent on Tuesday, it would be the worst day for the stock since the company went public in 2017.