A man poses for a banner photo for Snap Inc. on the facade of the New York Stock Exchange on the morning of the company’s IPO in New York City, March 2, 2017.
Brendan McDermid | Reuters
Check out the companies that hit the headlines in Tuesday’s midday trading.
Snap – Shares of the parent company Snapchat plummet 41.2% after Snap said it inability to meet sales and earnings estimates in the current quarter and plans to slow hiring to tame costs. The social media company cited inflation, supply chain shortages and uncertainties surrounding Apple’s privacy changes among the reasons for the warning.
Roblox – Roblox stock drops 8.4% after Atlantic Equities downgrade the stock of the online gaming platform to neutralfor reasons of reduced user engagement and app downloads.
Meta, Alphabet, Apple Tech stocks fell on Tuesday following a warning from Snapchat that they were likely to miss their own earnings and revenue targets for the current quarter. Shares of Alphabet, Twitter, Meta Platforms, Roku and Pinterest fell 6%, 3.6%, 8.6%. 16.4% and 24.4%, respectively.
Abercrombie & Fitch – Shares of the clothing retailer fell more than 30% after the company reported that product and shipping costs sales considerations for the first fiscal quarter. The company also cut its sales outlook for fiscal 2022, adding that economic difficulties are likely to remain at least through the end of the year.
Omnicom Group Advertising shares fell more than 11% after a revenue warning from Snap raised concerns about the digital ad market. An Omnicom executive said at a JPMorgan conference on Tuesday that the environment for advertising was “challenging,” according to a transcript from FactSet.
AutoZone – Shares jumped 4% following a drop in earnings from the auto parts retailer. AutoZone earned $29.03 per share in its most recent quarter, more than the $26.05 per share analysts polled by Refinitiv. Revenue also beat estimates.
Launch – Stocks up 8% after video conferencing company Earnings exceeded expectations and enhance its prospects. Zoom says it’s working on products to serve a hybrid workplace. The company posted earnings of $1.03 per share versus Refinitiv’s consensus estimate of 87 cents per share.
Petco Pet products retailer shares rose 1.4% after a better-than-expected quarterly report. Petco reported adjusted first-quarter profit of 17 cents per share on revenue of $1.48 billion. According to Refinitiv, analysts were expecting earnings of 15 cents per share on revenue of $1.46 billion. The company also beat Wall Street’s expectations for comparable store sales.
– CNBC’s Tanaya Macheel, Hannah Miao, Jesse Pound and Samantha Subin contributed to this report.