March 25, 2023

La Ronge Northerner

Complete Canadian News World

Snapchat dives into its quarterly earnings reports

pop (pop) reported fourth-quarter results late Tuesday that lined revenue estimates, but fell short of earnings, during a turbulent period for the social media company. Snap stock is down.


The company reported an adjusted loss of 18 cents per share on revenue of $1.3 billion. Analysts looked for Snap to report earnings of 11 cents a share. Wall Street expected revenue of $1.3 billion.

Snap stock fell 12.8% to 10.09 during the after-hours trading period stock market today.

In late August, Snap said it would cut back 20% of its workforce More than 6,000 people as part of a company-wide restructuring.

The company owns and operates the social media app Snapchat. It warned that it could suffer a period of lower revenue growth well into this year.

Snap Stock: Adjustments may be required

“The company implemented a major restructuring initiative last year,” Monness Crespi Hardt analyst Brian White said in a note to clients. “However, further modifications may be necessary if the environment deteriorates further.”

Like other social media companies, Snap has been hurt by its privacy changes an Apple (AAPL) led to an alarming drop in revenue. Moreover, advertising accounts for almost all of its revenue.

“Outside of Snap’s internal issues, the competitive landscape remains fierce and we believe the darkest days of this economic downturn lie ahead,” White said.

Jefferies analyst James Heaney has a hold rating on Snap stock and a price target of 10.

“We will wait and see evidence of an improvement in the revenue growth trajectory before becoming more positive,” he said in his note to clients.

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Snap stock has an IBD composite rating of 20 out of 99.

Please follow Brian Deagon on Twitter at @employee Learn more about technical stocks, analysis and financial markets.

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