In a U.S. security filing, tech company Snap said that the economy in the last month had deteriorated more than what was expected so it was cutting down its estimated quarterly forecast. This led to an after hours sell-off. It also lead to a decline in other tech stocks such as Alphabet and Amazon resulting in a fall in Nasdaq. Some traders held Snap responsible for the resulting fall.

Snap shares fell by 31 percent while Alphabet shares fell by 3.6 percent. Amazon fell by 2.2 percent while the Nasdaq futures also saw a fall. Many investors are wary as there have been continuous falls for weeks together in the stock exchange. The dotcom bust over two decades ago was the last time that the market has seen such continuous falls.

In the filing Snap also said that their reported revenue as well as their adjusted EBITDA would be less than the low end of their guidance range for the second quarter in 2022, due to the problems in the economy, since late April.

Reuters saw a memo sent by Evan Spiegel who is the CEO of Snap. The memo spoke of the problems that the tech company was likely to face. It noted that the company was “facing rising inflation and interest rates” similar to other companies in the nation. It noted that the company was also facing “supply chain shortages and labor disruptions.” It noted that there could be “platform policy changes” and that the company was facing “the impact of the war in Ukraine and more.”

Recently, Uber and Meta platforms (Facebook) also mentioned that they were looking at cost cutting and decreasing new hires. The Snap CEO said that the company was expecting to hire more than 500 people by the end of 2022, despite some planned hiring to be made in 2023.

Abercrombie & Fitch also lowered its revenue estimates and shares plunged. All the three major indexes plunged, according to a report by Reuters. Dow was down by 0.77 percent while S&P was down by 1.77 percent. Nasdaq saw the greatest slump of 3.26 percent.