Snap Inc.'s shares plunged over 15% after the company decided not to release its second-quarter financial forecast, citing an unpredictable macroeconomic climate. This unusual move has spurred concerns about a potential decline in advertising spending, as reported by Reuters.

The social media giant attributed its cautious stance to the impact of recent U.S. tariff changes on global advertising budgets. Snap has noticed a slowdown in advertising revenue, blaming it on reduced budgets from partners affected by the closure of a trade loophole related to duty-free imports from China and Hong Kong. The uncertainty has led to major players, like Chinese e-commerce firms Temu and Shein, slashing their U.S. advertising expenditures by over 50% on platforms including Snap, Facebook, and Pinterest.

Following the announcement, at least 17 brokerages reduced their price targets for Snap, bringing the median target to $10. Despite the alarm, some analysts interpret Snap's decision as a prudent measure in response to current economic conditions, rather than a signal of an overall market downturn, pointing to the strong performance of competitors like Google in the advertising domain.