Snapchat (NYSE: SNAP) shares crashed 30% on Monday after its CEO warned that the company will miss its own targets for revenue and EPS in the current quarter. Evan Spiegel, CEO of Snapchat also informed that the company will be slowing its hiring.

“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,”

“As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.”

“We believe it is now likely that we will report revenue and adjusted EBITDA below the low end of the guidance range we provided for this quarter.”

Evan Spiegel, CEO of Snapchat

The news took a hit on the wider social media and online advertisement stocks. Shares of Meta (NASDAQ: FB) fell 7%, Twitter (NYSE: TWTR) fell 3.6% and Pinterest (NYSE: PINS) fell more than 13%.

Although the revenue of Snapchat increased by 38% in Q1 FY22, the company reported a wider than expected loss compared to the previous year. The company’s financial guidance already had a 20% decline; if this is going to be missed it puts immense pressure on its revenue.

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