Snap Withholds Q2 Guidance Amid U.S. GDP Contraction and Tariffs, Shares Fall 13% on Ad Sector Slowdown

Snap Inc. announced on Tuesday that it will not provide a financial forecast for the second quarter due to economic uncertainty and potential disruptions from U.S. tariffs, which threaten global economic stability and digital advertising budgets. This announcement contributed to a 13% decline in Snap's shares during extended trading. The broader market faced pressure as U.S. GDP contracted for the first time in three years, leading to a drop in stock prices. Other companies also reported mixed results: Starbucks delivered weak quarterly earnings, Super Micro Computer (SMCI) lowered its third-quarter guidance citing delayed customer platform decisions, and Etsy (ESTY) posted better-than-expected revenue. Additionally, Edgewater Research issued a cautious outlook for AppLovin (APP), resulting in a decline in its shares. Meanwhile, Western Digital (WING) expects a return to growth, Qurate Retail Group (QRVO) saw a stock increase following a strong fourth-quarter earnings report, and Scotts Miracle-Gro (SMG) shares dropped after its second-quarter results. The earnings reports and economic data collectively indicate challenges in the advertising sector and broader market uncertainties.