Snap Stock Is Diving Wednesday: What's Going On?
Portfolio Pulse from Adam Eckert
Snap Inc (NYSE:SNAP) shares plummeted following mixed Q4 results, missing revenue estimates but beating earnings expectations. The company reported a 5% year-over-year revenue increase to $1.361 billion, below the expected $1.38 billion, and adjusted earnings of 8 cents per share, above the 6 cents forecast. Daily active users grew by 10% to 414 million. Snap cited the Middle East conflict as a factor impacting growth and provided Q1 revenue guidance of $1.095 billion to $1.135 billion, with expected negative EBITDA. Rosenblatt analyst Barton Crockett maintained a Neutral rating on SNAP but raised the price target from $11 to $12.
February 07, 2024 | 2:34 pm
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Snap Inc shares dropped significantly due to mixed Q4 results, with revenue missing estimates but earnings exceeding expectations. The company's cautious Q1 guidance and the impact of the Middle East conflict on growth also influenced the stock's performance.
The significant drop in Snap Inc's stock price is directly related to its Q4 earnings report, which showed a revenue miss and only a slight beat on earnings expectations. The cautious outlook for Q1, influenced by external geopolitical factors, further dampens investor sentiment. The adjustment of the price target by a Rosenblatt analyst, despite maintaining a Neutral rating, suggests a mixed outlook on the stock's future performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100