Snapchat earnings disaster.
Snapchat earnings were a disaster for investors. The company that has made its fame by having “disappearing” messages/pictures/videos stated that their revenue growth rate would be lower due to weaker ad revenue.
As my article published last week, More Woes For Snapchat, suggested that the redesign, done late last year, made Snapchat stock go down. Also, I stated that “I would let the shares go down a bit more before encouraging investors to buy into the company.”
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Snap earnings were a big disaster. Snapchat posted just above $230 million in revenue, which was lower than the consensus estimate of $243.6 million. Snap’s ad prices dropped about 65% year-over-year in the 1Q (excluding their Story ads).
As an additional bonus, Snapchat stock went down because their daily active users (191 million) did not match with analysts’ estimates of 194 million. Time will tell if Snapchat can make a comeback along the lines of Twitter.