Snap's Ad Business Struggles to Gain Momentum

Deep News11-05

Focus on the U.S. stock market's third-quarter 2026 earnings season. Snap Inc reported flat quarter-over-quarter daily active users in the U.S. and Europe, with year-over-year declines in those regions.

Snap Inc released its earnings, with revenue rising 14% year over year to $1.7 billion. However, growth was still primarily driven by its subscription business; the advertising business grew only 4% this quarter, showing weak momentum.

The company posted a net profit of $56.5 million, compared with a loss of $103.5 million in the same period last year. Even after turning a profit, investors still sold off Snap Inc shares following the earnings release, with the stock plunging 9% in after-hours trading.

Snap Inc's daily active users in the U.S. and Europe were unchanged quarter over quarter but declined year over year; users in the rest of the world continued to grow. The company announced plans to designate its consistently growing monthly active user count as its "core audience metric."

Snap Inc expects fourth-quarter revenue growth of about 14%.

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