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The owner of photo messaging app Snapchat lost a quarter of its market value in premarket trading after it also posted its slowest revenue growth in five years as advertisers cut spending due to spiraling inflation and geopolitical woes.
Other companies that rely on ad revenue including Alphabet (NASDAQ:GOOGL) Inc, Twitter Inc (NYSE:TWTR), Meta Platforms Inc and Pinterest (NYSE:PINS) Inc fell between 1.8% and 7.2%.
The slide in mega-cap growth stocks also comes against the backdrop of strengthening U.S. Treasury yields on expectations of continued aggressive rate hikes by the U.S. Federal Reserve, with markets widely expecting a fourth 75-basis-point hike at its November meeting.
U.S. stocks closed lower on Thursday as data on the labor market and comments from a Fed official reinforced rapid rate hike expectations and outweighed a flurry of solid corporate earnings.
At 5:27 a.m. ET, Dow e-minis were down 136 points, or 0.45%, S&P 500 e-minis were down 23.25 points, or 0.63%, and Nasdaq 100 e-minis were down 104.5 points, or 0.94%.
