Snap's Q2 revenue increased by 16% year over year to over $1.2 billion, but expected slower growth in Q3 led to significant stock decline, highlighting ongoing worries about advertising demand.
Despite having over 850 million monthly users and making improvements for advertisers, Snap's eCPM dropped by 3% in Q2, suggesting that demand for ads is not meeting investors' expectations.
Investors have been disappointed with Snap for years, but with shares trading under three times sales, it presents a potentially attractive bargain for those willing to take a long-term view.
While double-digit growth typically impresses, Snap's slowdown in eCPM growth and Q3 revenue expectations have caused concern, underscoring that advertising demand remains tepid in the current market.
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