![]() ![]() It seems the adverse effects were more substantial than initially anticipated, leading to the missed revenue target. Evan Spiegel, the CEO of Snap, stated at the time that the changes would likely have an impact on performance. But have investors overreacted? That depends on what caused the slowdown.Įarlier this year, Apple announced new changes to its privacy policy. So, any slowdown in growth can quickly spook the market. After all, these shares typically trade at a high premium. Seeing such high volatility with a technology stock isn’t exactly surprising. Meaning that Snap missed the mark by a relatively small amount. Analyst forecasts had placed third-quarter revenue at $1.1bn. While earnings per share beat expectations, revenue growth came up short. So why did the stock lose nearly a quarter of its value? The fall of the Snap share priceĪs promising as this growth appears to be, it seems investors were simply expecting more. Needless to say, this all sounds quite encouraging. By comparison, this figure was closer to 249 million a year ago, marking the fourth consecutive quarter during which Snap has achieved 20%+ growth in its active user base. Daily active users during this quarter reached 306 million. Most of this growth appears to stem from a significantly more engaged community. And free cash flow ventured into the black at $51.7m versus -$69.5m in 2020. Meanwhile, the firm’s net loss fell by 64%. Over the last three months, revenue increased by 57% compared to a year ago, reaching as high as just over $1.07bn. But even so, what was in the report that made investors unhappy? And is this a buying opportunity for my portfolio? Diving into the numbersĭespite what the Snap share price would suggest, I think the latest results were reasonably promising. And I think it’s fair to say that investors weren’t particularly impressed as the stock collapsed by over 25% in a single day! As drastic as this fall was, I think it’s worth noting that the 12-month performance is still firmly in positive territory above 40%. The social media company recently released its third-quarter earnings report. Last Friday was pretty dire for the Snap ( NYSE:SNAP) share price. ![]()
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