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snap (SNAP) reported fourth-quarter results late Tuesday. This was in a tumultuous time for social media companies that met their revenue estimates but fell well short of their revenues. Snap stock plummeted.
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The company reported an adjusted loss of 18 cents per share on revenue of $1.3 billion. Analysts expected Snap to report earnings of 11 cents per share for him. Wall Street expected him to earn $1.3 billion.
Snap shares fell 12.8% to 10.09 during after-hours trading on the stock market today.
In late August, Snap announced it would cut 20% of its more than 6,000 employees as part of a company-wide restructuring.
The company owns and operates the Snapchat social media app. It warned that revenue growth could slow again this year.
Snap stock: may need adjustment
“The company executed a significant restructuring plan last year,” Brian White, an analyst at Mones Crespi Hart, said in a note to clients. there is.”
Like other social media companies, Snap apple (AAPL) led to an uncomfortable decline in revenue. Moreover, advertising accounts for almost all of its revenue.
“Other than Snap’s internal issues, the competitive environment remains fierce and we believe the darkest days of this recession are ahead of us,” White said.
Jefferies analyst James Heaney maintained his hold rating and price target on Snap stock at 10.
“We will wait to see evidence of an improved earnings growth trajectory before being more positive,” he said in a note to clients.
The SNAP stock has an IBD composite rating of 20 out of 99.
Follow Brian Deagon on Twitter. @IBD_BDeagon Learn more about technology stocks, analytics and financial markets.
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