A slew of internet stocks were sharply lower premarket Tuesday, caught up in the wave of selling sparked by Snap Inc.’s warning late Monday that second-quarter earnings would lag estimates. Snap CEO Evan Spiegel issued the warning at a JP Morgan technology conference, and the company filed it with the SEC. Spiegel said that the economy has “definitely deteriorated further and faster” than Snap SNAP, -3.40% had expected when it gave its forecast during its earnings call last month. He added that the Snapchat parent is slowing its hiring pace for the year and looking for ways to cut costs. Snap shares fell 30%, Meta Platforms Inc. was down 7%, Alphabet Inc. was down 3.5%, Pinterest Inc. was down 13%, Twitter Inc. was down 3.6% and Amazon.com Inc. was down 2%. Netflix Inc. fell 1.6%.
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