Snap Inc's stock experienced a significant pre-market plunge of 8.66% on Thursday, extending the selloff from the previous overnight session.
The decline follows the company's first-quarter 2026 earnings report, which revealed that advertising revenue was negatively impacted by geopolitical conflicts in the Middle East and slowing growth in its key North American market. Snap disclosed an estimated $20 million to $25 million revenue impact from the Middle East situation in March alone and expects the uncertainty to persist.
Furthermore, investor sentiment was dampened by the company's second-quarter outlook, which included adjusted EBITDA guidance below analyst estimates and expectations for significant pre-tax restructuring charges. The company also announced the end of its partnership with AI startup Perplexity and forecast a decline in daily active users in North America for the current quarter.