What's Going On With Snapchat Parent Snap Stock Monday?

Snap Inc SNAP disclosed plans to reduce its global headcount by approximately 10% of its international full-time employees to execute its highest priorities. 

The Snapchat parent projected pre-tax charges of $55 million – $75 million, primarily consisting of severance and related costs. It looks to incur most of these costs during the first quarter of 2024. 

Analysts had flagged Snap’s potential for long-term growth due to its unique privacy-focused messaging platform and augmented reality (AR) leadership. 

With over 250 million daily average users (DAU) engaging with AR, BMO Capital analyst Brian Pitz observed positive ad revenue contributions from Snap’s platform investments. 

Pitz also praised Snap’s strategic pivot towards Creators over the last year. 

Also Read: Snapchat’s Evan Spiegel Takes Shots At Facebook, Instagram In A Leaked Memo: ‘Social Media Is Dead’

Facebook and Instagram parent Meta Platforms Inc’s META upbeat quarterly results last week led to a rally in social media stocks like Snap. 

Meta beat analyst revenue and EPS estimates in the fourth quarter. It clocked revenues of $40.11 billion and EPS of $5.33.

Over 20,000 tech workers have lost their jobs in 2024 as tech firms increasingly focus on artificial intelligence (AI).

In 2023, the tech sector let go of 141,516 employees in the first half of the year versus 6,000 a year ago.

Price Actions: SNAP shares traded lower by 3.31% at $16.49 on the last check Monday. 

Photo by Christopher Penler on Shutterstock