From Nasdaq:

Stock in Snapchat parent Snap (SNAP) is trading 30% below yesterday’s close in morning pre-market trading. The earnings season has varied with mixed results, but there is no overall trend. Snap reported earnings that beat expectations with EPS of $0.08, but revenue was light due to lower than expected revenue per user, indicating a shortfall in ad revenue.

Snap had to cut about 10% of their workforce due to high employee costs. While they aim to focus on growing user numbers to attract more revenue, there is competition from Instagram. The company needs to improve advertiser popularity to recover financially after earnings fell short.

While Snap stock has bounced back before after poor reactions to earnings, the current troubles are company-specific. There may be a short-term retracement of losses, but a confirmed turnaround in performance is needed for the stock to recover.



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