Snap Slides by Most in a Year After Holiday Sales Disappoint

  • Parent of Snapchat app has been cutting jobs, culling projects
  • Conflict in Middle East was a ‘headwind’ in the fourth quarter
Photographer: Michael Nagle/Bloomberg
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Snap Inc. plunged by the most in more than a year after the Snapchat app owner reported lower-than-projected revenue over the peak holiday season, disappointing investors just a week after much-larger rival Meta Platforms Inc. posted its best sales growth in two years.

Revenue rose 5% to $1.36 billion in the fourth quarter, missing the $1.38 billion average of analysts’ estimates. For the full year, growth was flat, “reflecting a challenging operating environment,” the Santa Monica, California-based company said in a letter to shareholdersBloomberg Terminal on Tuesday.