4 Key Questions For Snap's Maiden Earnings Report


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Snap Inc (NYSE:SNAP) will report its earnings for the first time as a public company on May 10.

Heading into the report, Wells Fargo's Peter Stabler detailed a series of questions that he is expecting to be addressed in the report and the post earnings conference call.

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1. Augmented Reality

The analyst is expecting Snapchat to detail its longer-term vision of augmented reality. Top priority would be for the company to make a pitch as to how it will maintain its "early leadership position" in augmented reality applications.

2. Monetization Plans

Stabler believes Snapchat "rapidly improved" its ad platform dating back to mid-2016, there are still concerns with the company's ability to re-target users based on first-party marketer data. The analyst is also looking for management to address its direct response advertising budgets, ad spend from small and medium-sized businesses, along with the potential to leverage third-party publisher partners to improve user data capture and utilization.


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3. Cloud Expenses

Stabler is hoping management will address its anticipated leverage over cloud computing infrastructure costs and provide some color on any computing needs along with the benefits from upfront spending commitments to cloud infrastructure platforms.

4. Third Party Players

Finally, Snapchat's status as being mostly closed to third-party partners has been well documented but it has been gradually opening itself up over time through its Discover partner. The analyst wants to hear management discuss its long-term outlook on the role of platform partners in both advertising capabilities and core technology factors like augmented reality.

Related Links:

Facebook's Big Push Into Augmented Reality

Diminished Reality Could Boost The Current AR Market Estimates


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorPreviewsAnalyst RatingsMoversTechMediaTrading IdeasAugmented RealityPeter StablerSNAPSnap EarningsSnapChat