Placeholder canvas
HomeFinance NewsSnap's stock drops due to Q4 revenue growth falling short of estimates.

Snap’s stock drops due to Q4 revenue growth falling short of estimates.

Published on

The stocks of Snap took a major hit after the social media platform reported that its fourth-quarter adjusted profit exceeded estimates, while its revenue fell below Wall Street targets. This caused the company to plan higher investments, leading to a significant drop in Snap stock. The competition for consumer usage has become increasingly stiff, leading to concerns about Snap’s performance in the market.

Snap reported its Q4 financial results, revealing that it added 8 million daily active users in the December quarter. However, the company experienced slowed daily active user growth, particularly in North America. This decline in user growth has prompted Snap to forecast an EBITDA loss for the March quarter in 2024, which is substantially higher than estimates. Additionally, the company plans to make significant investments to improve consumer engagement, while also expecting higher marketing expense in Q1.

Looking ahead, Snap stock faces significant technical challenges, despite its high IBD Relative Strength Rating. The company’s plan to cut 10% of its workforce in 2024 is also a cause for concern. Furthermore, the revenue forecast for the current quarter indicates that Snap’s performance in the market may continue to face challenges. Overall, Snap’s latest financial results have raised several red flags, leaving investors and industry analysts anticipating the company’s future moves and strategies.

Source link

Latest articles

United Airlines increases checked bag fee by $5 in response to American Airlines.

United Airlines announced that they will be raising the price for checked bags, joining...

Valuable Zelda Game Could Fetch Over $700k in Auction

In a world where physical video games are becoming increasingly harder to find due...

Limited options for IVF patients as Alabama halts embryo transfers.

Some fertility clinics and shipping services are facing uncertainty following an Alabama court ruling...

Potential Benefits for Consumers in Capital One and Discover Merger Deal.

Capital One's recent announcement to acquire Discover Financial in a deal worth over $35...

More like this

United Airlines increases checked bag fee by $5 in response to American Airlines.

United Airlines announced that they will be raising the price for checked bags, joining...

Valuable Zelda Game Could Fetch Over $700k in Auction

In a world where physical video games are becoming increasingly harder to find due...

Limited options for IVF patients as Alabama halts embryo transfers.

Some fertility clinics and shipping services are facing uncertainty following an Alabama court ruling...