![]() The miss on outlook was coupled with warnings from the company that a “rapid transition” of the business could hurt future earnings. Analysts were expecting $1.13 billion in revenue. For its fiscal third quarter, Snap expects DAUs of 405 million to 406 million and revenue of $1.07 billion to $1.113 billion. The surprise accompanying the report was Snap giving an outlook alongside its earnings. Snap’s artificial intelligence-powered chatbot, launched in February, is also finding a willing audience, as more than 150 million users sent in excess of 10 billion messages since its launch. More than 400 million monthly active users, up 52%, watched Spotlight, Snapchat’s entertainment platform for user-generated content. The company saw 397 million daily active users in its second quarter, up 14% year-over-year, with DAUs increasing in North America, Europe and the rest of the world. The company’s operating cash flow was negative $82 million, down from negative $124 million in the same quarter last year, and free cash flow was negative $119 million, down from $147 million. Snap’s net loss came in at $377 million, down from $422 million in the previous year. ![]() Analysts had been expecting an adjusted loss of four cents per share on revenue of $1.05 billion. The problem? Its first outlook in over a year fell short of expectations.įor its second quarter that ended June 30, Snap reported a loss before costs such as stock compensation of two cents per share, down from a loss of four cents in the same quarter of last year, on revenue of $1.068 billion, down 5% year-over-year. plunged by more than 18% in late trading despite the company beating earnings and revenue expectations in its latest quarter. © 2023 NYP Holdings, Inc.Shares in Snap Inc. Snap’s struggles also dragged down shares of Twitter, which is battling with Elon Musk over his agreement to take over the company for $44 billion. Snap is down more than 70% so far this year. But the company’s shares have plummeted more than 70% so far in 2022 and closed at $12.79 on Tuesday. Snapchat was one of many tech stocks that ballooned during the pandemic, trading as high as $83 in September. The tech-heavy Nasdaq Composite Index was down 2.4%. Roughly $100 billion in total was wiped off tech stocks Tuesday. “Once you start thinking about Google, that’s when the markets starts to sell off.” “Snap is a proxy for online advertising and when you see weakness there then you automatically think Facebook, Pinterest and Google,” said Dennis Dick, a trader at Bright Trading LLC in Las Vegas. Pinterest, meanwhile, was down a whopping 23 % at $17.30. Shares of Facebook and Instagram parent Meta plummeted 7.6% to $181.28, while Google parent Alphabet notched a 5% loss to trade around $2,119.40. Snap’s SOS spooked investors across social media and the tech sector more broadly. ![]() “The macroeconomic environment has deteriorated further and faster than anticipated,” Snap said in a Securities and Exchange Commission filing on Monday, adding that it’s expecting lower revenue and profit for the second quarter.Ĭompanies generally pull back from advertising spending when the economy slows, translating to lower revenue for social media firms like Snap that rely on ad dollars. Shares of Snapchat’s parent nosedived 43% on Tuesday after the disappearing-photos app sounded alarm bells about a slowing economy killing digital advertising revenue. I dated ChatGPT’s AI girlfriend - what happened when I broke up with Caryn Parents share social media’s devastating toll on teens driven to anorexia, suicide Surgeon general warns social media is triggering teen mental health crisis Woman accused of tricking teen into same-sex relationship also allegedly duped female McDonald’s worker ![]()
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