Snap stakes continue to drop on disappointing earnings

October 24, 2022: -On Friday, shares of Snap decreased by 28% in premarket trading after investors kept going to digest the company’s third-quarter earnings report that was released on Thursday.

The company is posting a surprising profit, but revenue is missing estimates, which comes in at $1.13 billion versus the $1.14 billion expected, a Refinitiv survey of analysts say.

The social media company has suffered due to the struggling online advertising market. In 2021, Apple’s data privacy update limited the ability of social media firms to track users online, which is continuing to hurt the company.

Bernstein analyst Mark Shmulik came down to the stock Friday morning to market perform from outperform and decreased his price target from $15 to $9.

In a note to investors, Shmulik is signaling there are still chances for the company, “SNAP’s untapped potential remains, yet unlikely to experience near-term inflection. Winning back investors and our confidence will take time.”

Barclays was optimistic in its analysis of Snap’s performance, reiterating an overweight which rate on the stock after showing that Snap “has a long history of overcoming challenging transitions.”

The company has continued to grow in popularity, with daily active users increasing by 19% yearly. Shares of Snap are decreased almost 77% year-to-date.