Why Snap, Facebook, and Pinterest Stocks Plunged Today
Chaos struck the social-media sector Friday morning, with shares of Pinterest (NYSE: PINS) stock sliding 3.4%, Facebook (NASDAQ: FB) falling 5.5%, and Snap (NYSE: SNAP) collapsing 23% through 10:15 a.m. EDT. You won't be surprised to learn that it's the hardest hit of these three -- Snap -- that's the cause of the collapse.
Last night after close of trading, Snap reported its Q3 2021 financial results. On the face of it, things weren't horrible. Analysts had forecast that Snap would report $1.1 billion in revenue for the quarter. While Snap's number -- $1.07 billion -- missed that target, the miss was minor.
Moreover, Snap reported a $0.17 per-share adjusted profit, more than twice Wall Street's forecast of $0.08. Daily active users of the social network grew 23% year over year, revenues rose 57%, and "non-GAAP diluted net income" was up 17-fold in comparison to last year. The company even reported positive free cash flow of $51.7 million.
Source Fool.com
