Market Overview

Snap Misses Q2 Estimates, Adds 7 Million Daily Active Users

Snap Misses Q2 Estimates, Adds 7 Million Daily Active Users

Thursday afternoon, Snap Inc (NYSE: SNAP) reported quarterly earnings for only the second time as a public company.

The social media upstart reported an earnings loss of 36 cents per share (adjusted to a 16-cent loss) from sales of $181.67 million, against estimates of a 15-cent loss and $186.22 million in revenue.

Snap added about 7 million daily active users during the quarter; Q2 total DAUs came in at 173 million, about 2 million short of estimates.

Shares fell more than 8 percent following the release. The stock traded at $13.05 at time of publication, down about 5 percent in after-hours trading.

What To Expect

When a company first goes public, its first few earnings reports can be accompanied by a measure of uncertainty — no one's quite sure what to expect, and that includes sell-side analysts. So, which of the professionals had their thesis proved prescient?

Out of 40 analysts in the name, according to TipRanks, only 19 have a bullish or bearish stance, the others having preferred to stay neutral on the sidelines until after earnings perhaps. Here are those analysts who updated their research with a bit more conviction one way or the other in the past month:

  • Deutsche Bank: Reiterated Buy rating with a $20 price target.
  • Drexel Hamilton: Reiterated Buy rating with a $30 price target (tied with Jefferies for the highest price target for the stock).
  • Summit Redstone: Sell rating reiterated, price target of $10.

Citi analyst Mark May in a note to clients Thursday stopped short of upping his Snap rating (he maintains it at Neutral), but said he prefers the stock to Twitter, Inc (NYSE: TWTR).

Shares of Snap were slightly lower in late Thursday trading, down 0.44 percent at $13.50.

Related Links:

Citi Analyst: We Prefer Snap Over Twitter

Facebook's Mimicry Tactics Against Snapchat Appear To Be Working

Latest Ratings for SNAP

Oct 2020Pivotal ResearchMaintainsBuy
Oct 2020Canaccord GenuityMaintainsHold
Oct 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for SNAP
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