Latest News

Snap stock is crashing again — 3 big problems still lurk: Analyst

S&P Futures




Dow Futures




Nasdaq Futures




Russell 2000 Futures




Crude Oil
















10-Yr Bond




















CMC Crypto 200




FTSE 100




Nikkei 225




The disappearing stock price for Snap continues after another challenging quarter.

Shares of the social media platform crashed 25% in pre-market trading on Friday as third quarter sales marked the fifth straight quarterly deceleration. Profits were also lackluster as Snap continued to blame an advertising slowdown and Apple privacy changes for the execution missteps.

Here’s a snapshot of Snap’s dismal numbers:

Net Sales: $1.13 billion vs. $1.14 billion estimate

Daily Active Users: 363 million vs. 358 million estimate

Average Revenue Per User: $3.11 vs. $3.17 estimate

Adjusted EPS: $0.08 vs. estimated loss of $0.02

Guidance: “Flat” revenue growth seen in the fourth quarter

The company warned sales trends in the fourth quarter would get worse.

Snap shares were tops on the Yahoo Finance ‘Trending Ticker‘ page through early morning.

EvercoreISI analyst Mark Mahaney said Snap’s Q3 results negatively surprised them. “We had assumed that the August improvement Snap disclosed in early September would hold for the quarter. Instead, Snap’s revenue trends were a very volatile 0% year over year in July, mid-teens % growth year over year in August, and low single-digit % growth year over year in September…even with comps easing from the Platform Policy Changes, which began in early Q3:21,” he said.

“And we think it likely that the recent major personnel changes at SNAP – the loss of key ad execs to Netflix – has exacerbated the headwinds,” Mahaney added.

POLAND – 2022/09/02: In this photo illustration a Snapchat logo seen displayed on a smartphone. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)

Analyst spotlight

Jefferies analyst Brent Thill sees three problems with the stock. He’s sticking with a Buy rating on Snap in the wake of the disastrous third quarter. But the long-time tech analyst sees three problems ahead that may still not be priced into Snap’s deeply discounted stock price:

“Q4 rev guidance implies significant growth deceleration. While Snap has seen its revenue growth accelerate to +9% year over year quarter to date, management is still only forecasting flat year over year growth for Q4. Weakness in brand advertising appears to be the main source of the steep deceleration, but we think there could also be conservatism embedded. In our view, Q1’23 may be the bottom for revenue growth, with gradual acceleration through 2023 on easing comparisons.

It’s difficult to parse out how many of Snap’s issues are transitory. The weakening macro backdrop is partially to blame for soft results, but we question how much is due to the iOS privacy issues and competitive threats. We view the competitive threats as most concerning given the potential long-term implications for the platform.

20% headcount reductions and executive departures could cause further disruptions. We worry that Snap’s reorganization could lead advertisers to slow or even pause their spending. Given Snap had been growing headcount over 30% year over year for 4 straight quarters, we wonder if the company can execute on its lofty growth objectives with a 20% smaller employee base.”

By the numbers: Snap’s stock price

All-Time High: $83.11 (Sept. 24, 2021)

YTD Performance: -83%

1-Year Performance: -89%

IPO Price (March 2017): $17

Price After First Day of Trading (March 2017): $24.50

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

Click here for the latest trending stock tickers of the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube



Stocks Drop as Yields Keep Rising; Pound Weakens: Markets Wrap

(Bloomberg) — Stocks dropped as Treasury yields continued to climb, with traders betting the Federal Reserve will keep raising interest rates until inflation is defeated, and as investors assessed companies’ resilience to a multitude of headwinds in the latest earnings reports. Most Read from BloombergChina Summons Chip Firms for Emergency Talks After US CurbsTrump Deposed in Suit by Investors Claiming Fraud in ‘Apprentice’ Videophone PitchesLiz Truss Odds: The Front-Runners to Replace the Prim


Oil steadies as rate hike talk offsets China demand hopes

LONDON (Reuters) -Oil steadied on Friday as investors weighed the impact of sharp interest rate rises on energy consumption, offsetting hopes of higher Chinese demand and output cuts by OPEC and its allies. To fight inflation, the U.S. Federal Reserve is trying to slow the economy and will keep raising its short-term rate target, Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday. Brent crude was up 3 cents to $92.41 a barrel by 1041 GMT.

Yahoo Finance

U.S. dollar has become ‘bit of a wrecking ball’: Strategist

The strong dollar is wreaking havoc on other countries and U.S. multi-nationals operating abroad. Some strategists see no near-term stop to the rising dollar, even amid a recession.

Associated Press

Global shares mostly fall as investors watch for inflation

Global shares were mostly lower Friday in muted trading, as investors kept an eye on inflation and awaited the outcome of a Communist Party congress in China. Britain’s FTSE 100 shed 1% to 6,871.64 as the Conservative Party was preparing to replace Liz Truss as prime minister within a week after she resigned on Thursday after a turbulent 45-day term, conceding that she could not deliver on her tax-cutting economic plans. Former Prime Minister Boris Johnson is among several candidates expected to vie to take her place.


Twitter tells staff no layoffs are planned, following reports Musk will axe 75% after takeover

Twitter Inc. has reportedly told staff there are no layoffs planned after a separate report that Tesla CEO Elon Musk would cut 75% of the social-media company’s workers. Twitter General Counsel Sean Edgett sent employees an email on Thursday to say no widespread job cuts are planned,


Snap crashes, drags peers, as dire forecast sparks ad growth fears

YouTube-parent Alphabet Inc, Facebook-parent Meta Platform Inc, Pinterest Inc and Twitter Inc all slid between 1.7% and 9.2% in premarket trade. “We believe Snap is facing increased competition, primarily from TikTok, both for time spent and increasingly for ad dollars, which is compounding the challenges of a softer macro and Apple’s (privacy-related) changes,” Atlantic Equities analysts said in a note. Snap, on Thursday, reported its slowest revenue growth as a public company for the latest quarter and forecast no revenue growth in the typically busy holiday quarter, while Wall Street analysts were expecting a 3.3% rise, according to Refinitiv data.


Nasdaq futures slide as Snap’s ad warning knocks down social media shares

(Reuters) -Nasdaq futures tumbled on Friday as elevated U.S. Treasury yields and Snap Inc’s forecast of no revenue growth for the busy holiday quarter rattled shares of other social media companies. The owner of photo messaging app Snapchat lost more than a quarter of its market value in premarket trading after it also posted its slowest quarterly revenue growth in five years as advertisers cut spending due to spiraling inflation and geopolitical woes. Other companies that rely heavily on ad revenue including Alphabet Inc, Twitter Inc, Meta Platforms Inc and Pinterest Inc fell between 1.8% and 7.4%.

Motley Fool

1 Semiconductor Stock Down 47% You May Regret Not Buying Hand Over Fist

Taiwan Semiconductor Manufacturing Company (NYSE: TSM), popularly known as TSMC, delivered solid third-quarter results on Oct. 13 that crushed Wall Street’s expectations. The world’s leading semiconductor foundry by market share also delivered healthy guidance for the current quarter that points toward sustained growth in its business. Let’s look at what’s driving TSMC’s growth and why this semiconductor stock could turn out to be a top long-term pick that investors may regret not buying while it is still down.


HCA Healthcare stock falls after profit tops expectations but revenue falls shy, as admissions declined

Shares of HCA Healthcare Inc. fell 1.7% in premarket trading Friday, after the hospital operator reported third-quarter profit that topped expectations but revenue that fell shy, as admissions declined. Net income fell $1.34 billion, or $3.91 a share, from $2.27 billion, or $7.00 a share, in the year-ago period. The latest quarter’s results include losses on sales of facilities reduced earnings per share by 2 cents. The FactSet EPS consensus was $3.88. Revenue declined 2.0% to $14.97 billion, ju

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News