Snap (SNAP) stock dropped 19% in premarket trading due to disappointing second-quarter earnings. Revenue fell short at $2.87 ARPU, with a widened net loss of $263 million. Snap faces competition from Meta and TikTok, but projects optimistic third-quarter revenue of $1.475-1.505 billion. Subscription service Snapchat+ sees growth with 16 million subscribers.

Despite challenges, Snap’s stock fell 12% year-to-date. CEO Evan Spiegel reorganized engineering teams after the departure of Eric Young. Snap’s efforts to integrate AI and improve ad performance show promise, but analysts are skeptical about clear returns. Wall Street rates SNAP stock a “Hold” with a $9.91 price target.

If SNAP’s premarket plunge continues, it could see its biggest daily drop in over a year. Snap’s struggles with ad performance and revenue growth led to the sharp decline. Despite user engagement and subscription growth, Snap’s stock performance lags behind competitors Meta and Reddit, which have seen gains.

Read more at Yahoo Finance: Snap Stock Stares Down Its Worst Day in a Year After Earnings