Snap's stock dropped 14% following its Q1 earnings report, which revealed consistent revenue and user growth but lacked second-quarter guidance due to macroeconomic uncertainties. The CFO highlighted potential headwinds from trade restrictions affecting advertising demand. The trade policies, especially the end of the de minimis exemption allowing for duty-free goods under $800 from China, impact advertisers' spending. Analysts are concerned over the company’s direction with continued investment in AR and AI amidst these challenges.
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.
We've heard from a subset of advertisers that their spending has been impacted by the changes to the de minimis exemption.
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