Why Snap Stock Soared, Then Slumped, This Week
Shares of Snap (NYSE: SNAP) saw huge gains this week that seem set to evaporate on Friday. The social media stock rose 20% through Thursday trading, according to data provided by S&P Global Market Intelligence, as the S&P 500 jumped nearly 4%.
That broader market rally played a role in Snap's stock price surge, and so did high expectations around its Thursday evening earnings report. But the stock looks set to reverse those gains on Friday in response to management's updated outlook.
Snap's share price was down nearly 30% in premarket trading as investors digested that earnings update. The company said in a filing with the SEC that revenue growth slowed to just 13%, marking a sharp deceleration compared to the prior quarter's 38% spike. Financial trends were significantly worse, too. Operating cash flow turned negative, net losses expanded, and the company only barely reached adjusted profitability.
Source Fool.com
