Snap shares plunged over 25% in extended trading on Thursday to end a five-day winning streak, and have yet to recover from the previous quarter’s earnings disappointment. The app maker missed on both ends again in Q2, reporting LPS of $0.02 on revenues that were up 13% (short of the 20%-25% previously forecast) at $1.11bn.
They woulda got away with it too, if it weren’t for those meddling Apple rules. The word “headwinds” appeared a lot, largely in reference to Apple’s recent privacy changes, which have “upended more than a decade of advertising industry standards”. Other ad-dependent platforms declined in fear of a similar fate, including Meta, Twitter, Alphabet and Pinterest.
The good news is that daily active users (DAUs) are growing, hitting 347m vs the 344.2m expected, and that the company has nearly $5bn in cash and equivalents on the books. However, Snap refused to give guidance for the quarter bc of the “challenging environment”, and will be substantially slowing their rate of hiring. More social media earnings next week, so stay tuned
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