Snap Inc.'s stock price plummeted 24.3% in August 2025, dragged down by disappointing earnings guidance and technical issues. While daily active users grew 7.4% year-over-year in Q2, the growth rate has been slowing from its previous double-digit highs. Advertising system outages exacerbated revenue pressure, although management insisted that demand for ad inventory remained strong.
The social media company faces a dual challenge: reigniting user growth amid macroeconomic uncertainty while maintaining advertiser confidence. A bidding error (now resolved) exposed operational vulnerabilities in Snapchat's core revenue engine. The market reacted swiftly, with the stock plunging 17% in a single day following the earnings report.
