Snap shares plunge 25% as economy, fierce competition slow revenue growth

Snap Inc on Thursday painted a grim picture of the effects of a weakening economy on social media and declined to make a forecast in “incredibly challenging” conditions, sending its shares down 25% and setting off a chain reaction of stocks among rivals.

The Snapchat owner said some advertisers continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising.