Snap stock plunged as its revenue miss and guidance also drove down shares in Facebook, Twitter, Google and others in digital advertising. (Bloomberg) -- U.S. equities fell on Friday after the chairman of the Federal Reserve signaled some concern about inflation.
Full Answer
Why is Snapchat stock dropping?
- Personally, i find snapchat a bit complicated to use and not very user-friendly compared to other social platforms. ( I think most people feel the same way)
- Most people think the company is overvalued for it being just a camera app.
- In recent years, the reputation of the company is not in a good shape.
Where will snap stock be in 3 years?
Snap's stock trades at about 11 times this year's sales and 9 times next year's sales. Analysts expect its revenue to rise 35% this year and 31% next year, but its bottom line is expected to stay ...
Why is snap stock crashing?
But Snap ’s stock was down 22% in after-hours trading — and plunged as much as 30% — after the company missed Q3 revenue expectations and CEO Evan Spiegel called out “significant headwinds” including Apple’s iOS privacy changes that put a damper on ad revenue. Click here to sign up for Variety’s free Media Earnings newsletter.
Why did Snapchat stock crash?
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Should I buy or sell Snap stock right now?
34 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Snap in the last year. There are currently 1 sell ratin...
What is Snap's stock price forecast for 2022?
34 Wall Street research analysts have issued 1-year target prices for Snap's shares. Their forecasts range from $14.00 to $85.00. On average, they...
How has Snap's stock performed in 2022?
Snap's stock was trading at $47.03 at the start of the year. Since then, SNAP shares have decreased by 71.8% and is now trading at $13.28. View th...
When is Snap's next earnings date?
Snap is scheduled to release its next quarterly earnings announcement on Thursday, July 28th 2022. View our earnings forecast for Snap .
How were Snap's earnings last quarter?
Snap Inc. (NYSE:SNAP) announced its quarterly earnings data on Thursday, April, 21st. The company reported ($0.02) earnings per share (EPS) for the...
What guidance has Snap issued on next quarter's earnings?
Snap updated its second quarter 2022 earnings guidance on Tuesday, June, 7th. The company provided earnings per share guidance of for the period. T...
Who are Snap's key executives?
Snap's management team includes the following people: Mr. Evan T. Spiegel , Co-Founder, CEO & Director (Age 31, Pay $3.29M) Mr. Robert Murphy ,...
What is Evan Spiegel's approval rating as Snap's CEO?
184 employees have rated Snap CEO Evan Spiegel on Glassdoor.com . Evan Spiegel has an approval rating of 79% among Snap's employees.
Who are some of Snap's key competitors?
Some companies that are related to Snap include Baidu (BIDU) , Zoom Video Communications (ZM) , Twitter (TWTR) , Trade Desk (TTD) , Match Grou...
Key Points
Snap's stock plunged after the company missed Q3 revenue expectations and posted soft Q4 revenue guidance.
NYSE: SNAP
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Snap's stock was priced for perfection, but it delivered an imperfect quarter
Snap 's ( SNAP -3.00% ) stock price plummeted 21% during an after-hours sell-off on Oct. 21 after the social media company posted its third-quarter results.
First, the good news..
Snap's daily active users (DAUs) rose 23% year over year to 306 million, marking its fourth straight quarter of over 20% DAU growth.
Snap's stock is still worth buying
Prior to its post-earnings plunge, Snap's stock price had rallied 166% over the previous 12 months and was trading at over 30 times this year's sales. Therefore, investors shouldn't be surprised that share prices fell more than 20% after the company failed to hit a grand slam.
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About Snap
Snap, Inc. engages in the operation of its camera platform.
Headlines
SOLA IMPACT'S I CAN FOUNDATION PARTNERS WITH SNAP INC. TO HELP SOUTH LA STUDENTS AFFORD COLLEGE - Yahoo Finance
Snap (NYSE:SNAP) Frequently Asked Questions
31 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Snap in the last year. There are currently 7 hold ratings and 24 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" Snap stock. View analyst ratings for Snap or view top-rated stocks.
Is investment banking inaccurate?
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. Given Wall Street’s optimistic bias, a bunch of negative calls is a glaring red flag.
Is Snap still a problem?
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.
How much did Snap IPO raise?
Spiegel said no thank you. Then, in 2017, Snap scored big with its eye-catching initial public offering that raised $3.4 billion and gave it a market valuation of $23.8 billion. That made Snap the largest U.S.-listed IPO among tech companies since Facebook.
What is Snap app?
Snap calls itself a camera company. By downloading its Snapchat app to a smartphone, users have access to a wide range of features. Once a photo or video is taken, users can manipulate and change the content in multiple, often playful, ways. For example, people can be integrated into a 3D-animated cartoon.
What is Snap's first augmented reality smart glasses called?
The company also added mapping features. In mid-May, Snap introduced its first augmented reality smart glasses called Spectacles. The company previously released camera-embedded sunglasses under the same name.
What are the features of Snapchat?
Other features include augmented reality, enabling users, for example, to manipulate photos of objects in the real world. They can also discover and purchase fashion items, buy tickets, play games, catch up on news and entertainment and share their content with other Snapchat users.
What is Discover Snapchat?
Another feature on Snapchat is a page called Discover. It's basically a news feed that provides original content from news publishers. It now includes programming that feature pop culture, celebrities, doctors, teachers, workers and others citizens who share their experiences.
What is Snapchat's AR application?
Applications for AR technology include navigation, education, games, commerce and more. Another feature on Snapchat is a page called Discover.
Is Snap a target for Facebook?
In its early years as a public company, Snap became a big target of Facebook, with its Instagram platform. Facebook began to routinely copy the most popular features on Snapchat and applied them to Instagram. While those actions initially tempered Snap stock, the threat has diminished.
How much revenue did Snap make in the third quarter?
Snap's revenue rose 72% annually to $285.7 million during the quarter, topping estimates by nearly $33 million. That also marked an acceleration from its 62% growth during the third quarter.
Is Snap still rewarding itself?
Unfortunately, Snap is still rewarding itself at the expense of its shareholders. It reported $181 million in stock-based compensation expenses during the fourth quarter, compared to just $6.8 million in the prior year quarter.
What happened
Shares of Snap ( SNAP -3.65% ) have fallen today, down by 4% as of 1:15 p.m. EDT, after larger rival Facebook ( FB -0.75% ) 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.
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