Shares of Snap Inc., the parent company of instant messaging app Snapchat, plunged over 40 percent on May 24 after the company warned investors it would be unable to meet its own targets for revenue and adjusted earnings in the current quarter.
Snap said in its first quarter earnings update, which it reported in April, that the company expected year-over-year revenue growth of 20 percent to 25 percent, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was estimated to either break even or reach $50 million.
