Snapchat stock fell during trading today, Wednesday, in the wake of the issuance of weak quarterly business results in the fourth quarter of 2022.
Yesterday, Tuesday, the American company revealed that it recorded quarterly losses of about $288.5 million in the fourth quarter, compared to achieving profits of $23 million in the same period of 2021.
Snapchat revenue rose just 0.1% to $1.299 billion in the fourth quarter, below expectations of $1.31 billion.
The number of active users of Snapchat reached 375 million daily users in the fourth quarter, below expectations of 375.3 million users.
In terms of trading, Snapchat shares fell at 17:11 GMT, by 14.6%, to $9.8.
Is the technology sector suffering?
It appears from the business results of many technology companies recently that they are suffering from a possible economic recession, which forced some of them to cut costs and freeze employment.
In the same context, Microsoft, Amazon, Meta, Twitter, PayPal and Alphabet announced plans to lay off thousands of workers to cut costs.