Snapchat Craters After Announcing Poor Earnings
Jul 22, 2022 By MarketDepth
Snap Inc. (SNAP:NAS) nose dives after releasing disappointing second-quarter results. Snap is down 38% intraday after releasing the news.
Snap’s stock is down more than 78% year-to-date after pessimism from analysts. This second-quarter earnings report proved that the analyst’s reports were correct.
Snap explained that economic uncertainty and growing competition from other platforms like TikTok are eating into the company’s earnings.
“We are not satisfied with the results we are delivering, regardless of the current headwinds.”The company stated
During the Q2 earnings call, CEO Evan Spiegel didn’t offer any comment during the analyst Q&A which also provided growing concern about the company’s future.
“Clearly with 2Q results & the way the call was handled, Snap has an even bigger hill to climb going forward and re-establish a track record of execution.”JPMorgan Analysts stated
Snap said revenue this quarter is flat and declined to provide forward-looking guidance as the future looks incredibly challenging.