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Snap Misses Q2 Estimates, Adds 7 Million Daily Active Users

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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

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

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