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The Snapchat owner's shares plunged 29.8% in premarket trading
as it declined to make a forecast and said record-high inflation
and increasing competition hurt advertising demand.
Nasdaq futures fell the most among its peers, with Meta
Platforms Inc and Alphabet Inc involved in online ad tech
dropping 4.8% and 2.9%, respectively.
Twitter Inc shed 2.1% before reporting its quarterly results,
while Meta and Alphabet were set to post their earnings next
week along with other Big Tech firms including Apple Inc,
Microsoft Corp and Amazon.com Inc.
Investors are bracing for the slowest ever global revenue growth
for the social media sector as intensifying competition from
TikTok and Apple in advertising threaten to compound economic
woes in the second quarter.
All three of Wall Street's main indexes are still set to end the
week with their biggest gains in almost a month, with growth
stocks doing most of the heavy lifting after markets cheered
quarterly reports from Tesla Inc and Netflix Inc.
The U.S. Federal Reserve is expected to raise interest rates by
75 basis points next week to curb runaway inflation, followed by
second-quarter U.S. gross domestic product data, which is likely
to be negative again.
Two quarters of negative GDP would mean the United States is in
a recession.
At 6:32 a.m. ET, Dow e-minis were down 2 points, or 0.01%, S&P
500 e-minis were down 10.5 points, or 0.26%, and Nasdaq 100
e-minis were down 68.25 points, or 0.54%.
Of the 91 S&P 500 companies that have reporting earnings so far,
78% topped expectations. Analysts now see year-on-year S&P 500
profits to grow 6.3% for the second quarter, down from the 6.8%
estimate at the start of the three-month period, according to
Refinitiv data.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak
Dasgupta)
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