EddieJayonCrypto
8 Feb 24
Snap Inc.’s stock experienced a significant 30.13% drop after the company reported quarterly revenue that fell short of expectations, despite a 5% year-over-year growth to $1.36 billion. Daily active user growth also slowed to 10% in the latest quarter, far below the robust expansion in previous per...
Snap Inc.'s stock experienced a significant 30.13% drop after the company reported quarterly revenue that fell short of expectations, despite a 5% year-over-year growth to $1.36 billion. Daily active user growth also slowed to 10% in the latest quarter, far below the robust expansion in previous periods. Despite the immediate downturn, analysts remain optimistic about Snap's long-term prospects, setting a 12-month price target of $13.84 – a potential upside of over 13% from current levels. Snap is scheduled to report first-quarter 2024 financial results in late April.
Before the plunge, Snap's shares had closed the previous day at $17.45, giving the Snapchat parent company a market capitalization of $20.257 billion. Although revenue missed projections, adjusted earnings per share of 8 cents exceeded analysts' consensus estimate of 6 cents. The company trimmed its net loss to $248 million from $288 million in the prior year quarter. Over the past year, Snap added 38 million daily active users to reach 414 million in Q4. However, the 10% user growth represents a considerable slowdown from Snap's robust expansion in previous periods. The company forecasts first-quarter 2024 revenue between $1.1 billion and $1.14 billion, equating to 11% to 15% year-over-year growth.
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