Why Snap Inc. (SNAP) Went Down On Wednesday
We recently published a list of These 10 Firms Were Battered by Dismal Earnings, Outlook Guidance . In this article, we are going to take a look at where Snap Inc. (NYSE:SNAP) stands against other worst-performing stocks on Wednesday.
A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy’s contraction in the first quarter of the year, triggering fears of recession.
Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent.
Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year.
In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
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Snap Inc. (NYSE:SNAP)
Snap Inc. tumbled by 12.43 percent on Wednesday to close at $7.96 each as investor sentiment was dragged down by the lack of business outlook amid “uncertainty” about the future.
According to the company, it does not intend to share formal financial guidance for the second quarter of the year because of “macroeconomic conditions may evolve in the months ahead, and … this may impact advertising demand more broadly.”
It said that despite revenue growth in the first quarter of the year, its operations remained challenged by significant factors.
“We believe it is prudent to continue to balance our level of investment with realized revenue growth,” it said.
In the first quarter of the year, Snap Inc. (NYSE:SNAP) narrowed its net loss by 54 percent to $139.6 million from $305 million in the same period a year earlier.
Revenues were higher by 14 percent to $1.363 billion from $1.194 billion year-on-year.
Overall, SNAP ranks 1st on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of SNAP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SNAP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires .
Disclosure: None. This article is originally published at Insider Monkey .