Snap stock drops in after-market trading after numbers – E24

Snap stock drops in after-market trading after numbers - E24

The Snapchat owner lost expectations in the second quarter and the stock fell more than 25 percent in after-market trading.

Snap didn’t convince the market in its Q2 report.

After the shutdown on Wall Street, social media published its quarterly numbers. Recent figures show that trading volume on Snap in the second quarter of the year ended at $1.1 billion. At the same time, the after-tax result was $422 million.

Snap’s share has seen a negative development in 2022 and has lost nearly two-thirds of its value this year so far.

– While growth on our platform continues to increase long-term opportunities for business, our second-quarter financial results do not reflect our ambitions, CEO Evan Spiegel says in the company’s quarterly report.

The number of daily active users rose to 347 million, an increase of 18 percent over the same period last year. That exceeded expectations of 344.2 million users, according to StreetAccount.

Up front, trading volume was expected to fall at $1.14 billion, according to Bloomberg estimates. At the same time, the after-tax result was expected to be minus $332.7 million, according to the news agency.

Snap’s stock fell sharply after the numbers were released, and at the time of writing it was down 25.8 percent in after-market trading on Wall Street.

Snap does not provide forward guidance in the report, and indicates “uncertainty” in the market.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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