These 10 Firms Were Battered by Dismal Earnings, Outlook Guidance

1. Snap Inc. (NYSE:SNAP)

Snap Inc. tumbled by 12.43 percent on Wednesday to close at $7.96 each as investor sentiment was dragged down by the lack of business outlook amid “uncertainty” about the future.

According to the company, it does not intend to share formal financial guidance for the second quarter of the year because of “macroeconomic conditions may evolve in the months ahead, and … this may impact advertising demand more broadly.”

It said that despite revenue growth in the first quarter of the year, its operations remained challenged by significant factors.

“We believe it is prudent to continue to balance our level of investment with realized revenue growth,” it said.

In the first quarter of the year, Snap Inc. (NYSE:SNAP) narrowed its net loss by 54 percent to $139.6 million from $305 million in the same period a year earlier.

Revenues were higher by 14 percent to $1.363 billion from $1.194 billion year-on-year.

While we acknowledge the potential of SNAP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SNAP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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