It is certainly doom and gloom for $Snap Inc(SNAP)$ as its share price plummeted 28%  ever since it announced its disappointing Q322 results on Thursday.  

Snap is now down a massive 85% in just 1 year from a high of 77.52 to a low of 7.76. 

Is Snap a BUY or a Falling Knife? 

Snap has posted its slowest revenue growth since its IPO 5 years ago as advertisers cut spending amid high inflation and rising interest rates. 

Snap 3Q22 sales increased 6% to USD 1.13 billion, slightly short of analysts' estimate of USD 1.14 billion. 

However Snap is facing strong headwinds currently.  New privacy settings from Apple that require all social media companies to get smartphone users' permission for tracking, continue to make it more difficult for advertisers to measure and manage their ad campaigns on social platforms. 

Snap is also facing fierce competition from Tik Tok as its users are spending less time watching content on Snapchat. 

Snap has posted a net loss of 22 cents per share and said that it expects 4Q22 revenue to be flat compared to last year.  

So for now I believe that Snap is a Falling Knife that is best to stay away from. 

Snap's bad news have sent social media stocks spiralling.   Meta Platforms, parent company of Facebook and Instagram dropped 1.2%,  Pinterest is down 6.4%.

Twitter also dropped 4.8% amid new report that Biden Administration is considering whether some of Elon Musk's ventures should be subject to national security reviews which includes his Twitter acquisition. 

Snap is in a tough situation right now with slowing global economy, high inflation and rising interest rates.  However Snap said it would now refocus on growing its user base, diversifying its revenue resources and investing in augmented reality technologies.  Snap is cutting cost by laying off 20% of its employees and discontinuing projects such as gaming and a flying camera drone.  It is also buying back up to USD 500 million of its shares. 

Let's hope Snap's new moves will be successful in turning around the company. 

@Tiger_chat@MillionaireTiger@TigerStars@CaptainTiger