Snap Inc. SNAP, parent company of social media platform Snapchat, is one of many tech players competing for consumers' time spent with its product.
The Santa Monica, California-based company has introduced new products and put a focus on content in 2022, but it might not have been enough to save its stock.
What Happened: Snap reported third quarter revenue and earnings per share that both came in ahead of analysts’ estimates. It ended the third quarter with 363 million daily active users, an increase of 19% year-over-year.
“This quarter we took action to further focus our business on our three strategic priorities: growing our community and deepening their engagement with our products, reaccelerating and diversifying our revenue growth, and investing in augmented reality,” Snap CEO Evan Spiegel said.
Investors weren’t impressed with the earnings report from Snap or an announced $500 million share buyback.
Comments from Spiegel on navigating “this volatile macroeconomic environment” going forward could have spooked investors.
More than likely, the biggest negative from the earnings report was Snap saying it would not provided guidance on revenue or adjusted EBITDA for the fourth quarter due to the “operating environment” it was in.
Shares fell in the after-hours trading session Thursday, continuing a rough year for the stock.
Investing $1,000 In Snap One Year Ago: Shares of Snap opened for trading at $76.57 on Oct. 21, 2021. A $1,000 investment could have purchased 13.06 shares of Snap.
That $1,000 investment today would be worth $98.99, down 90.1% in one year.
Snap shares are also down significantly year-to-date since the start of 2022. A $1,000 investment of Snap at open on Jan. 3 ($47.63 per share) would be worth $159.18 today, down 84.1%.
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