Shares of Snap Inc. (SNAP) tumbled 13.64% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. The social media giant, known for its popular app Snapchat, disappointed investors with an earnings miss and refrained from providing guidance for the upcoming quarter, citing economic uncertainties.

Snap reported a loss of $0.08 per share for Q1, falling short of analysts' expectations of a $0.03 profit. This significant earnings miss appears to be the primary driver behind the stock's sharp decline. Despite the disappointing bottom line, Snap's revenue slightly exceeded estimates, coming in at $1.36 billion compared to the expected $1.35 billion, representing a 14.1% year-over-year growth.

Adding to investor concerns, Snap announced in its investor letter that it would not provide guidance for the second quarter due to "macro economic uncertainty." This lack of forward-looking information likely contributed to the negative sentiment surrounding the stock. On a more positive note, Snap reported 460 million daily active users, surpassing the estimated 458.3 million, and posted an adjusted EBITDA of $108.425 million, significantly beating the expected $64.7 million. However, these metrics were not enough to offset the earnings miss and guidance withholding, as evidenced by the stock's pre-market performance.