Check out the companies making headlines in midday trading Tuesday.
Snap — Shares of Snapchat’s parent company plummeted 41.2% after Snap said it’s unlikely to meet revenue and earnings estimates in the current quarter and plans to slow hiring to tame expenses. The social media company cited inflation, supply chain shortages and uncertainties surrounding Apple’s privacy changes among the reasons for the warning.
Roblox — Shares of Roblox plunged 8.4% after Atlantic Equities downgraded the online gaming platform’s stock to neutral, citing weakening user engagement and app downloads.
Meta, Alphabet, Apple — Tech stocks fell Tuesday following a warning from Snapchat that it’s likely to miss its own earnings and revenue targets for the current quarter. Shares of Alphabet, Twitter, Meta Platforms, Roku and Pinterest fell 6%, 3.6%, 8.6%. 16.4% and 24.4%, respectively.
Abercrombie & Fitch — Shares of the apparel retailer tumbled more than 30% after the company reported that freight and product costs weighed on sales for the fiscal first quarter. The company also slashed its sales outlook for fiscal 2022, adding that economic headwinds could remain through at least the end of the year.
Omnicom Group — The advertising stock dropped more than 11% after a revenue warning from Snap caused concerned about the digital ad market. An Omnicom executive said at a JPMorgan conference on Tuesday that the environment for advertising was “challenging,” according to a transcript from FactSet.
AutoZone — Shares gained 4% following an earnings beat from the auto parts retailer. AutoZone earned $29.03 per share in its most recent quarter, more than the $26.05 per share expected by analysts polled by Refinitiv. Revenue also beat estimates.
Zoom — Shares jumped 8% after the videoconferencing company surpassed earnings expectations and raised its outlook. Zoom said it is working on products to service a hybrid workplace. The company posted earnings of $1.03 per share compared with a Refinitiv consensus estimate of 87 cents per share.
Petco – Shares of the pet products retailer popped 1.4% after a better-than-expected quarterly report. Petco reported an adjusted first-quarter profit of 17 cents per share on revenue of $1.48 billion. Analysts had expected earnings of 15 cents per share on revenue of $1.46 billion, according to Refinitiv. The company also beat Wall Street expectations for comparable-store sales.
Snowflake — Shares of the cloud data company dropped nearly 5% ahead of its quarterly earnings report this week. Snowflake fell even after analysts at Rosenblatt Securities said the stock can surge 84%.
— CNBC’s Tanaya Macheel, Hannah Miao, Jesse Pound and Samantha Subin contributed to this report.