Snap Stock Suffers Another Post-Earnings Collapse: What You Need To Know Now!
Snap Inc. (NYSE: SNAP) stock is in freefall after the company reported its third-quarter earnings on Thursday. The stock opened at $13.45 on Friday morning and was trading at $12.60 by mid-day, down more than 8% from the previous day's close. This is the second consecutive quarter that Snap has seen its stock price fall after reporting earnings.
The company reported a net loss of $325 million, or $0.27 per share, compared to a net loss of $443 million, or $0.37 per share, in the same quarter a year ago. Revenue was $679 million, up 44% year-over-year. Analysts had expected revenue of $678 million.
The company's daily active users (DAUs) increased to 249 million, up from 239 million in the previous quarter. This was below the consensus estimate of 251 million. Average revenue per user (ARPU) was $2.58, up from $2.17 in the same quarter a year ago.
Snap's CEO Evan Spiegel said in the company's earnings call that the company is focused on continuing to invest in product innovation and content partnerships in order to drive user growth and engagement. He also said that the company is focused on creating more engaging and personalized experiences for its users.
Snap's stock has been volatile since its initial public offering in 2017, and its latest earnings report is unlikely to inspire confidence in investors. The company's user growth has been sluggish, and its monetization efforts have yet to produce meaningful results. As such, investors should proceed with caution when considering Snap stock.