Mr. Hedge once told you this would happen.

The company run by the CEO married to an A-list foreign-born model never had a chance of making money, and the stock would crash and burn.

The CEO did cash out from a lot of his stock at much higher prices, which will keep his wife around.

Mr. Hedge once told you this would happen.

Snapchat

Evan Spiegel

Miranda Kerr

The Snap CEO’s memo caused another tech stock plunge—and the worst one-day loss in company history. Here’s why it freaked everyone out

Tech stocks had another terrible showing on Tuesday, but it wasn’t because of the release of new economic data or a bad earnings report. The dark day was largely the result of a single memo from Snap’s CEO, Evan Spiegel.

Spiegel wrote to his employees on Monday, warning that macroeconomic challenges are leading to a growth slowdown at Snapchat, and the company will likely miss its own estimates for revenue and earnings growth in the second quarter, which it made just a month ago.

His words instantly sent a chill down the spine of social media investors and put any company that relies on digital advertising on notice.

“I think Snap was kind of a leading indicator of the beginning of some weakness in internet advertising,” Rosenblatt analyst Barton Crockett told CNBC on Tuesday. “I think they’re ahead of the curve in the second quarter in saying that things are getting a little weaker.”

Snap stock cratered 43% after the unusual announcement, posting its worst day on record, and other social media and advertising giants sank with it.

Shares of Pinterest nosedived 23%, Google dropped 5%, and Twitter and Meta lost 5.5% and 7.6%, respectively.

The CEO said there has been a significant cutback in digital ad spending due to the toxic combination of rising interest rates, sky-high inflation, supply chain challenges, and the war in Ukraine. – Source