Shares of social media company plunge after it claims that conditions have deteriorated faster than expected.

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Snap lost almost a third its value Monday, after the social media company warned in unscheduled earnings that it would be hurt by worsening macroeconomic circumstances.

Snapchat parent stated in a regulatory filing, “The macroeconomic environment has deteriorated further than expected” since April 22nd when it issued guidance for its earnings.

The company stated that it expects revenues and adjusted earnings prior to interest, deduction and amortization to be lower than its guidance range for this quarter.

Evan Spiegel, chief executive, stated that the company’s fundamentals were strong, but the company faced rising inflation and interest rates as well as supply chain shortages, labour disruptions, platform policies changes, and the effects of the war in Ukraine. These macroeconomic conditions have directly affected social media platforms, as well the advertisers upon which they depend for revenue.

He stated that the company would invest at a slower pace and slow down the pace of its hiring, “than we had anticipated given the operating environment.”

Over the past two-years, the US technology sector has seen a boom as people under coronavirus lockdowns spend more time online and are spending more money.

These fortunes are rapidly changing, however, as rising interest rates, slowing growth, and supply chain disruptions, have caused a large and deep stock sell-off. This has prompted some of the largest tech companies to cut back on hiring, reduce costs, and adjust expectations.

Snap shares plunged 30% to $16 in after-hours trading. Other tech stocks that derive most of their revenue from digital advertising also suffered, with Snap’s shares falling 30% in after-hours trading to $16. Uber has also reduced its 2022 hiring targets, while Meta recently lowered its targets.

Spiegel stated that Snap would “evaluate the remaining budgets for 2022”, adding that leaders have been asked to examine spending in order to identify additional cost savings.

Snap, a Los Angeles-based company, had previously stated that it expected adjusted Ebitda to be between $50mn and break-even in the second quarter.

It also stated that it expected between 20-25 percent revenue growth year over year in the second period — as opposed to the 116 percent growth in sales during pandemic lockdowns in the second half of 2021.

Snap faces other challenges beyond the macroeconomic backdrop. Snap lost 25% of its value in October 2013 after posting a grim outlook for the fourth quarter. It blamed disruptions to its advertising business due to Apple’s privacy changes. Apps on Apple’s App store must obtain explicit permission from users to track their movements for advertising purposes.

Snap stated Monday that “Our community continues growing, and we continue seeing strong engagement across Snapchat. We continue to see significant opportunities for growth in our average revenue per customer over the long-term,” Snap said.