SNAP Inc Share Price Weighed Down By Disappointing Q3 Earnings Results
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Summary:
- SNAP may need to make even more job cuts.
- Summary of Snap's difficult quarter.
- Price of Snap fell by close to 30% on Friday.
SNAP Inc Share Price down 30%
One veteran tech analyst expressed concern that Snap (SNAP) may need to make even more job cuts than it had first anticipated due to the third quarter's steeper than anticipated decline in business. After the social media platform disclosed that third-quarter sales slowed for the fifth consecutive quarter, the price of Snap fell by close to 30% on Friday morning. Throughout the session, the company's shares dominated Yahoo Finance's "Trending Ticker" page.
Snap said at the end of August that it would lay off 1,300 workers, or 20% of its staff. Despite the recent round of major layoffs, Snap continues to blame a slowdown in advertising and Apple's (AAPL) privacy rules for its executional blunders as third-quarter profitability lagged. The business also issued a warning that the fourth-quarter sales trends will deteriorate.
Here is a summary of Snap's difficult quarter: Net Sales: $1.13 billion vs an anticipated $1.14 billion, 363 million versus an expected 358 million daily active users, $3.11 as opposed to the predicted $3.17 for average revenue per user Adjusted EPS: $0.08 vs a loss of $0.02 expected, Guidance: Fourth-quarter revenue growth was "flat."
"Yes, I mean they do [have to cut expenses more]," Jefferies Analyst Brent Thill mentioned on Yahoo Finance Live. "They just restructured the company. They obviously are in the process of still reducing the workforce by 20%. They may have to go deeper."
Shares of the photo-focused social media behemoth Snap (SNAP) are currently 30% down than their 52-week highs after it released poor third-quarter earnings. Additionally suffering from the stock shift are companies like Meta (META), Alphabet (GOOGL) (GOOG), Pinterest (PINS), and others. Some of these businesses are being helped by the fact that U.S. stocks are rising in the first part of Friday's session, but not Snap.
SNAP Price Chart
Sources: finance.yahoo.com, thestreet.com
