Snap Inc (NYSE:SNAP) shares are trading higher Tuesday, but the stock has fallen nearly 75% since the start of the year — what's going on?
Snap shares have trended lower with the overall market in 2022 amid geopolitical tensions and inflation concerns. The Federal Reserve is in the midst of what is expected to be its most aggressive tightening cycle in more than 40 years as the central bank attempts to tame runaway inflation.
Apple Inc's (NASDAQ:AAPL) privacy changes seemed to be the start of the downfall for Snap, but the stock bounced off the lows in February after the company said it had recovered from the changes faster than it initially expected.
However, Snap sparked fears that the downward pressure on the stock could continue when it filed a Form 8-K with the SEC last month showing it expects to miss its previously-issued guidance.
"The macroeconomic environment has deteriorated further and faster than anticipated," Snap said in the filing. As a result, the company now expects to report second-quarter revenue and adjusted EBITDA "below the low end" of its guidance range.
On Friday, Goldman Sachs analyst Eric Sheridan maintained Snap with a Buy rating and lowered the price target from $60 to $25.
SNAP Price Action: Snap has traded between $83.34 and $11.92 over a 52-week period.
The stock was up 0.83% at $12.12 at press time, according to data from Benzinga Pro.
Photo: rswebsols from Pixabay.
