6 Red Flags for Snap's Future
Snap's (NYSE: SNAP) stock tumbled 27% during after-hours trading on Thursday, July 21, following the release of the social media company's second-quarter earnings report. Its revenue rose 13% year over year to $1.11 billion, which missed analysts' estimates by about $20 million.
Back in May, Snap had already warned investors its second-quarter revenue would come in "below the low end" of its prior guidance for 20%-25% growth amid tough macroeconomic challenges.
Snap's net loss also widened from $152 million to $422 million, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) plummeted 94% to just $7 million. Nevertheless, its non-GAAP (generally accepted accounting principles) loss of two cents per share still beat Wall Street's expectations by a penny.
Source Fool.com
