We discussed just last week how shocking and abnormal it was for Snapchat’s parent company to suddenly guide down for the rest of the year — out of the blue a month after reporting earnings.
Snap Inc. announced late on May 23 that it will miss revenue targets and adjusted earnings for the second quarter.
The news of course sent shares plummeting 40% in the already beaten-down stock, yanking the entire market down with it the next day.
I said at the time that we should get used to this, even though it is normally super unusual for a company to do this a month after reporting earnings. It tells us that everything has fallen apart in just a month’s time.
And now big, bad Microsoft just did the same thing… Shares sold off before rising into the close as the market caught a nice bid Thursday. But the big takeaway here is the macroeconomic environment these companies are operating in is collapsing — and fast…
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