Why Snap Stock Cratered on Tuesday

Shares of Snap (NYSE: SNAP) cratered on Tuesday, falling as much as 40.7%. As of 10:48 a.m. ET, the stock was still down 40.4%.

The catalyst that sent the social media company plummeting was a profit warning that set off alarm bells about the state of the economy.

In a regulatory filing after the market close on Monday, Snap -- the parent of Snapchat -- warned that the economic picture had become much more uncertain, causing the company to rein in both its revenue and profit guidance for the second quarter.

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Source Fool.com