Snap Plunged - Bleak Future? Next Week Caution!
U.S. social media giant $Snap Inc(SNAP)$ released its second-quarter results after the U.S. stock market closed on July 21.
Snap's 2Q revenue fell sharply short of market expectations due to a drag on its advertising business, and announced a slowdown in hiring and a share buyback.
The company's shares plunged more than 26% after the bell following the earnings release.
$Snap Inc(SNAP)$ shares have fallen nearly 2/3 so far this year. In May, Snap said it would not meet the 2Q guidance it set last month, causing its shares to plunge 43%.
1. Q2 2022 Financial Summary
•Revenue: $1,111 million, missed the analysts expectations of $1,114 million
•Net loss: $422 million, compared to $152 million in the prior year.
•Adjusted EBITDA: $7 million, compared to $117 million in the prior year.
•ARPU(Average revenue per user): $3.2, down 4.5% yoy, lower than the market expectations of $3.37.
•Financial Guidance: Given uncertainties related to the operating environment, $Snap Inc(SNAP)$ will not provide expectations for revenue or adjusted EBITDA for the third quarter of 2022.
Data from Snap website
2. Earnings Need To Be Ware Of Next Week
Tech stocks like $Alphabet(GOOG)$, $Microsoft(MSFT)$, $Meta Platforms, Inc.(META)$, $Apple(AAPL)$ ,$Amazon.com(AMZN)$, and oil stocks like $Exxon Mobil(XOM)$& $Occidental(OXY)$will post their earnings in the following weeks.
a. $Alphabet(GOOG)$ $Microsoft(MSFT)$ and $Apple(AAPL)$'s business model will be affected by the strong dollar and reported down guidance of EPS. Before their earnings, investors should be cautious.
b. $Meta Platforms, Inc.(META)$ may have a different story with $Snap Inc(SNAP)$. Its P/E is already low and may not have much room to fall. However, we still remain doubtfed towards $Meta Platforms, Inc.(META)$ in case that it post a disappointing earnings.
c. $Amazon.com(AMZN)$ declined after last earnings mainly because the decreasing value of $Rivian Automotive, Inc.(RIVN)$. Its business may be affected by multiple factors and investors should still be wary of its volatility.
d. $Exxon Mobil(XOM)$and $Occidental(OXY)$has been up 20% and 80% since 2022. When tech stocks seems to welcome the reversal, investors who hold the oil stocks should be cautious because $Light Crude Oil - main 2208(CLmain)$dropped recently.
What's your opinions towards Snap Plunge?
Do you think these big companies will post a happy or disappointing earnings?
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Some big company like Amazon , meta, MSFT will see drop in earning due weak comsumer spending.