Snap Inc. shares tumbled in premarket trading after the owner of the Snapchat photo-sharing app acknowledged a slowdown in advertising revenue growth, due in part to a technical issue with its ad-buying tools earlier this year.
The company on Tuesday reported second-quarter sales that were shy of Wall Street’s average estimate, and on a call with investors later said that ad revenue, which rose by 9% in the first quarter, is now gaining at a rate of 3% to 4%. Snap shares, which have fallen 13% so far this year, slid more than 17% in premarket trading on Wednesday after closing at $9.39 in New York.