With so much talk of a looming recession, it struck a nerve. While tech companies don’t typically spend much time discussing macroeconomic challenges in their earnings reports, or in open letters to their staff, Spiegel spent a significant portion of Monday’s note discussing the volatile business environment facing Snapc-and, basically, the U.S. Shares of Pinterest nosedived 23%, Google dropped 5%, and Twitter and Meta lost 5.5% and 7.6%, respectively. Snap stock cratered 43% after the unusual announcement, posting its worst day on record, and other social media and advertising giants sank with it. “I think they’re ahead of the curve in the second quarter in saying that things are getting a little weaker.” “I think Snap was kind of a leading indicator of the beginning of some weakness in internet advertising,” Rosenblatt analyst Barton Crockett told CNBC on Tuesday. His words instantly sent a chill down the spine of social media investors and put any company that relies on digital advertising on notice. Spiegel wrote to his employees on Monday, warning that macroeconomic challenges are leading to a growth slowdown at Snapchat, and the company will likely miss its own estimates for revenue and earnings growth in the second quarter, which it made just a month ago. The dark day was largely the result of a single memo from Snap’s CEO, Evan Spiegel.

Tech stocks had another terrible showing on Tuesday, but it wasn’t because of the release of new economic data or a bad earnings report.

Snap ceo