Why Did Shares Of Snapchat Just Tank?

Shares of Snap Inc SNAP are trading lower in the after-hours session Thursday after the company reported first-quarter financial results, here’s what investors need to know.

By The Numbers: Snapchat reported first earnings of one cent per share, which came ahead of the 1 cent loss estimate, on revenues of $988.6 million, which missed the $1.01 billion consensus estimate.

The popular app ended the quarter with $1.57 billion in cash and cash equivalents as of March 31, 2023.

“Our community continues to grow, reaching 383 million daily active users in Q1, and we are working to deepen engagement with our content platform while building innovative new features and services like My AI,” said Evan Spiegel, Snapchat CEO.

“We are working to accelerate our revenue growth, and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners.”

The company said its daily active users (DAUs) increased 15% year over year to 383 million. It did not provide formal guidance for the second quarter.

SNAP Price Action: The stock has a 52-week high of $30.37 and a 52-week low of $7.33. Shares are trading 19.50% lower to $8.43 during the after-hours session, according to data from Beniznga Pro.

Photo by Souvik Banerjee from Pixabay