Snap Shares Fall on Ad Revenue Hit and Slow Growth
Snap reported first-quarter advertising revenue of $1.24 billion as geopolitical uncertainty in the Middle East and slowing North American demand weighed on results. The company ended its partnership with AI startup Perplexity while shares fell 7% in after-hours trading.
SNAP INC - A shares fell 7% late evening after the company reported a $20 million to $25 million revenue hit from Middle East geopolitical conflict. Advertising revenue rose 3% to $1.24 billion, missing the faster growth reported by larger social media rivals. Investors are weighing whether the platform can stabilize North American growth while pivoting toward international markets and AI automation.
### Geopolitical Friction and Regional Slowdown Snap leadership said the conflict in the Middle East impacted advertising spend during March, and they expect this uncertainty to persist. While total revenue of $1.53 billion met LSEG estimates, growth in North America slowed to 2%. Daily active users in North America declined, even as global users rose by 9 million to reach 483 million.
