Shares in Snapchat maker Snap fell off a cliff Thursday after the company announced its Q3 results. The company’s stock plunged 25% after hours, reports Reuters. The reason? Snap executives said the company was facing two threats: supply-chain issues and privacy changes Apple implemented on its iOS platform earlier this year.
Why did snap stock fall 30% Thursday?
Oct 22, 2021 · Why is Snap stock crashing? Blame Apple and the supply chain Evan Spiegel, CEO of Snapchat’s parent company, admitted that Apple’s privacy changes had a bigger impact on the company than expected.
Why did Snapchat stock plunge to a low of $57?
Feb 03, 2022 · What happened. Following Meta Platforms ' ( FB 3.86%) flop of an earnings report last night, shares of rival social media stock Snap ( SNAP 8.70%) suffered a sympathetic crash. As of 11:20 a.m. ET ...
Is snap stock really worth 13 times its cash profits?
Apr 05, 2021 · What happened. Snap ( SNAP -8.62%) shareholders just closed out a rough month. Their stock fell 20% in March compared to a 4.2% rise in the S&P 500, according to data provided by S&P Global Market ...
Why did Snapchat stock plunge after Q3 earnings report?
May 22, 2018 · Given Wall Street’s optimistic bias, a bunch of negative calls is a glaring red flag. Following Snap’s underwhelming quarter, analysts rush to …
Why is SNAP stock crashing?
Is SNAP stock a good buy now?
Is SNAP a buy Sell or hold?
Will SNAP go up?
Does Snap make more acquisitions?
Snap will make more acquisitions in the camera and augmented reality niches in its bid to make smartphone cameras more valuable to its users. In the meantime, its challenge is to build on last year's impressive growth (active users spiked 22% last quarter) while improving its finances.
Does Demitri Kalogeropoulos have a position in any of the stocks mentioned?
Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prev.
SNAP Continues to Lose Money
Snap’s most recent earnings report was a major fiasco for several reasons. But let’s start with the simplest. This company is nowhere near becoming consistently profitable. As I’ve discussed previously, social media stocks tend to underperform the market until they turn EPS positive.
Analysts Dumping on SNAP Stock
Investment banking analysis of stocks is often inaccurate. Professional analysts tend to be too positive on stocks for a variety of reasons. However, it’s extremely noteworthy when a bunch of analysts all say to avoid a stock and put sour price targets on a company.
Facebook Threat Looms
Even if all those problems weren’t enough, Snap still faces an existential problem. Its name is Facebook. Ever since Snap started picking up steam, Facebook has imitated many of Snap’s best features. Following the Snap IPO, Facebook’s Instagram in particular cloned much of Snap’s functionality seemingly in a move to crush the new rival.
SNAP Stock: Heading for Single Digits
Sure, SNAP stock could rally in the short term. It’s been sold heavily in recent weeks. Short sellers have been having a feast. They still make up 12% of the float, however, potentially setting the stage for a short squeeze.
Facebook's latest replicated feature is coming to the U.S
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
What happened
Shares of Snap ( NYSE:SNAP) have fallen today, down by 4% as of 1:15 p.m. EDT, after larger rival Facebook ( NASDAQ:FB) rolled out "Avatars" in the U.S. Avatars are Facebook's version of Bitmoji that it initially introduced in Australia last summer.
So what
Facebook has been shamelessly copying Snapchat's most popular features for years with varying levels of success. Snap had acquired Bitstrips, the maker of Bitmoji, back in 2016 for $100 million. Bitmoji are personalized emoji that users can customize to look like themselves in various situations. Avatars started rolling out in Europe last month.
Now what
Facebook is fairly late to market with a personalized emoji feature, which is a popular form of expression on social media platforms. Apple offers Memoji, which users can create and then animate with the 3D facial recognition technology on newer iPhones.
Who is Evan from Snapchat?
The Snapchat parent reported fourth-quarter earnings results. Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
Who is Evan from Motley Fool?
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
