Meta Platforms Inc META shares are trading lower Friday in sympathy with Snap Inc SNAP, which reported worse-than-expected financial results, announced a reduction in its hiring rate and held back guidance. Several analysts also downgraded the stock following the report.
Snap said second-quarter revenue increased 13% year-over-year to $1.11 billion, which missed the estimate of $1.14 billion, according to data from Benzinga Pro. The social media company reported a quarterly loss of 2 cents per share, which missed the estimate for a loss of 1 cent per share. Daily active users increased 18% year-over-year to 347 million.
Given uncertainties related to the operating environment, Snap said it would not provide third-quarter revenue or adjusted EBITDA guidance.
"We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth," said Evan Spiegel, CEO of Snap.
Related Link: Snap Q2 Earnings Highlights: Stock Tanks On No Q3 Guidance, Revenue And EPS Miss
Meta Platforms operates an ecosystem of social media-related applications including Facebook, Instagram, Messenger and WhatsApp. The company is scheduled to announce its second-quarter financial results after the market closes on July 27.
META Price Action: Meta has traded between $384.33 and $154.25 over a 52-week period.
The stock was down 4.89% at $174.22 at time of publication.
Photo: Coffee Bean from Pixabay.
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