Snap sinks as ad glitch, fierce competition stall growth


FILE PHOTO: A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for Snap Inc. to post their IPO, in New York City, NY, U.S. March 2, 2017. REUTERS/Lucas Jackson/File photo

(Reuters) -Snap shares plummeted nearly 17% in premarket trading on Wednesday as a weak quarter and mounting competition underscored the company's struggle to keep pace with AI-driven peers.

Advertisers have been curtailing marketing budgets amid economic uncertainty and leaning toward bigger platforms like TikTok and Meta's Facebook and Instagram.

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