Snap was already struggling. Then came Trump's tariffs.

Core Insights - Snap's stock experienced a significant decline of 14% after reporting first-quarter earnings, which were in line with expectations for revenue and user growth, but comments from the CFO raised concerns among investors [1][4] - The CFO indicated uncertainty regarding macroeconomic conditions and their potential impact on advertising demand, leading to the decision not to provide formal financial guidance for Q2 [2][4] - Changes to the de minimis exemption, which allows duty-free entry for goods valued under $800, are expected to create headwinds for Snap, as some advertisers reported reduced spending due to these changes [3][4] Financial Performance - Snap reported first-quarter revenue of$1.36 billion, reflecting a 14% increase year-over-year [8] - The company incurred a net loss of $140 million, an improvement from a loss of$305 million in the previous year [8] - Daily active users reached 460 million, marking a 9% increase from the prior year [8] Market Position and Challenges - Snap faces intense competition from larger platforms like Meta and TikTok, which has contributed to inconsistent earnings results and investor concerns over slowing user growth in key markets [6] - The company's stock has declined nearly 40% over the past year and has lost 66% of its value since its IPO in 2017, when it was valued between $20 billion and$25 billion [7] - Analysts have noted that smaller platforms like Snap may be more vulnerable to the impacts of tariffs compared to larger competitors [5]