Snap shares fell more than 15% Wednesday after the social media company withheld second-quarter guidance due to the uncertain macroeconomic environment.

“While our topline revenue has continued to grow, we have experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth,” the company said Tuesday, adding that macro conditions could impact advertising demand.

Snap’s finance chief Derek Andersen said during an earnings call that some advertisers are already seeing an impact from changes to the de minimis exemption. The loophole, which ends Friday, currently allows shipments under $800 to enter the U.S. duty-free.

President Donald Trump’s shifting tariff plans have created an unsettling backdrop for companies this earnings season. Fears of a weakening economy have also fueled concerns that companies could ease up advertising spending, where Snap makes a key component of revenues.

The company said ad revenues grew 9% year over year to $1.21 billion during the quarter.

Despite holding back on guidance, Snap reported 14% revenue growth, up from $1.19 billion a year ago to $1.36 billion. Snap’s loss also narrowed 54% to $140 million, or 8 cents per share, from about $305 million, or 19 cents, last year. The loss was due to a $70.1 million charge related to cash severance, stock-based compensation expenses and other costs associated with a 2024 restructuring.

Snap also signaled ongoing user growth. Daily active users grew to 460 million, up from 453 million the previous quarter. The company said it hit 900 million monthly active users, up from 850 million in August, the last time Snap provided that stat. DAUs fell to 99 million from 100 million in North America during the period, but Snap says it doesn’t expect more declines this quarter.

Many on Wall Street expect the company’s lack of visibility into the second quarter and macro backdrop to weigh on shares and adjusted price targets to account for it.

“While [price-to-sales ratio] is nearing a historical bottom and could support stock, we reiterate our neutral rating as Snap has been pressured more than peers in prior macro downturns,” said Bank of America’s Justin Post.

Other social media companies saw shares move lower Tuesday, including Pinterest, down 5%, Reddit, down 6%, and Meta, down 3%.

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