Snap Stock Craters After Earnings: What's Going On?
Portfolio Pulse from Erica Kollmann
Snap Inc. (NYSE:SNAP) shares plummeted after the company reported a revenue miss for Q2, with revenue increasing 16% year-over-year to $1.24 billion, falling short of the $1.25 billion expected by analysts. The company also reported negative operating and free cash flow. Despite a 9% increase in daily active users, multiple analysts have lowered their price targets for Snap. The stock is trading well below its 50-day moving average and is down 22.98% to $9.86.
August 02, 2024 | 2:15 pm
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Snap Inc. reported a Q2 revenue miss, with revenue at $1.24 billion versus the expected $1.25 billion. The company also posted negative operating and free cash flow. Despite a 9% increase in daily active users, multiple analysts have lowered their price targets. The stock is down 22.98% to $9.86.
The revenue miss and negative cash flow are significant negative indicators for Snap Inc. Despite user growth, the financial metrics and analyst downgrades suggest a bearish outlook in the short term.
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