"Boone acknowledged improving profitability and raised his 2027 EBITDA estimate, but flagged weaker engagement, including a sequential decline in North American daily active users. Global daily active users also fell sequentially and missed estimates, which he attributed to reduced community marketing spend and regulatory-driven account removals in Australia. He said stronger AI-powered content recommendations from competitors are challenging Snap's ability to retain user attention and defend advertising share."
"Snap Inc. (NYSE:SNAP) shares moved lower Thursday after the company posted a quarterly profit surprise and topped revenue expectations. Investors remain focused on rising competitive pressure in digital advertising and signs of weaker user engagement. The company reported fourth-quarter earnings of 3 cents per share, topping expectations for a 3-cent loss. Revenue rose 10.2% year over year to $1.72 billion, beating consensus estimates of $1.70 billion."
"Looking ahead, Boone said Snap is testing new social features to better compete with Instagram and TikTok. He views the planned 2026 launch of Specs as a potential differentiated, mass-market AI glasses platform, though revenue from the Perplexity integration remains excluded from near-term guidance. Boone also pointed to a newly authorized share buyback supported by balance sheet strength and improving cash flow, but said Snap shares appear fairly valued amid intensifying competition and ongoing pressure on the advertising business."
Snap reported fourth-quarter earnings of $0.03 per share and revenue of $1.72 billion, a 10.2% year-over-year increase that beat estimates. Shares fell as investors weighed deteriorating user engagement and escalating competition in digital advertising. Analyst Boone raised his 2027 EBITDA estimate and noted improving profitability while flagging sequential declines in North American and global daily active users tied to reduced marketing and regulatory-driven account removals in Australia. Competitors' AI-powered content recommendations are eroding Snap's ability to retain attention and advertising share. Snap is testing new social features, plans a 2026 Specs launch, and authorized a share buyback.
Read at Benzinga
Unable to calculate read time
Collection
[
|
...
]