At mid-session on the New York Stock Exchange, where it is listed on the Nasdaq index, the shares plummeted by 34.20%, a trend already observed on Tuesday in operations in the secondary market, after closing.
The American technology company Snap, creator of the popular social network snapchatcollapsed this morning in the stock market Wall Street and lost up to 34.2% of its value, after reporting its results the day before, disappointing for investors.
Mid-session on the New York Stock Exchange, where it is listed on the index Nasdaqthe shares plummeted 34.20%, a trend already observed on Tuesday in operations in the secondary market, after closing.
Analyst Michael Nathanson, quoted by MarketWatch, expressively said that “covering Snap can be one of the least pleasant experiences in our careers as analysts,” and added with some sarcasm: “Until now that’s only happened to us with Twitter… with what that means.”
Corporate balance: what were Snap’s results
Was the drop in advertising revenue which has most affected the company’s profits, which on Tuesday also pointed to the consequences suffered by the conflicts in the Middle East, without making the reasons clear.
In a statement, the firm said that the conflict, to which it has previously alluded, towill affect its growth in the next quarter, but it said it was satisfied with its results and its advertisers.
The quarterly income They were 1,360 million dollars compared to the 1,380 million expected; while the average income per user was also below expectations ($3.29, compared to 3.33). “The numbers they disappoint in revenue in a quarter that should be positive due to the impact of the Christmas season. This evolution leads to questioning the company’s ability to boost its advertising revenue. Especially after the good figures that companies such as Meta (+25%), Google (+11%) or YouTube (+16%) have published in this item also in the fourth quarter,” they add from Bankinter.
The day before, anticipating these poor results, Snap announced that it was cutting 10% of its plant (450 people), which are added to the 20% that it already cut in August 2022.
Those layoffs, the company said, would cause it to incur pre-tax charges of between $55 million and $75 million, consisting mainly of compensation and related costs.
Source: Ambito
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