Snap experienced a steep 14% decline in stock price following its first-quarter earnings report. Although revenue and user growth met expectations, the CFO's statement regarding uncertainty in macroeconomic conditions and the absence of second-quarter guidance alarmed investors. The situation is further complicated by trade restrictions that hinder advertising from Chinese companies targeting US consumers, along with changes to the de minimis exception for duty-free imports, which have impacted advertiser spending.
"Given the uncertainty with respect to how macroeconomic conditions may evolve in the months ahead, and how this may impact advertising demand more broadly, we do not intend to share formal financial guidance for Q2," Andersen said.
"We've heard from a subset of advertisers that their spending has been impacted by the changes to the de minimis exemption," Andersen said.
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