Snap stock price tanks in a warning sign for social media investors: Here's what happening

The wild growth that Snapchat and other social media companies enjoyed during the lockdown phase of the COVID pandemic is looking farther and farther in the rearview mirror.Shares of Snap Inc. are tumbling in premarket trading on Friday after the company reported disappointing financial results, missing second-quarter estimates on earnings and revenue, and showing signs of flatlining user growth in North America and Europe.Snap reported a loss per share of 2 cents, compared to a consensus estimate of 1 cent cited by CNBC. Revenue for the quarter was $1.11 billion, compared to expectations of $1.14 billion, which were already modest. Snap’s average revenue per user was flat at $3.20, far lower than its peak of $4.06 in the fourth quarter of last year.Notably, Snap also reported a net loss of $422 million, significantly worse than the $152 million it lost in the year-earlier period.Snap’s global active user base grew to 347 million, beating consensus estimates and representing growth of 18% compared to the same period last year. But much of that growth came from areas outside of North America and Europe, where Snap reported a quarter-over-quarter growth of just 1 million and 2 million users respectively, indicating that its business…
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