Why Snap Stock Dropped 24% Last Month
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Why Snap Stock Dropped 24% Last Month
"Shares of Snap (NYSE: SNAP) fell 24.3% in August 2025, according to data from S&P Global Market Intelligence. The company behind the popular social media platform Snapchat posted decent second-quarter results on Aug. 5, but modest management comments and soft next-period guidance left Snap investors underwhelmed. The stock fell 17% the next day. Image source: Getty Images. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now."
"At the same time, Snapchat experienced a glitch in its advertising system last quarter. Ad-spot auctions sometimes resulted in very low prices, which Snap had to honor. This issue has been fixed, but not before reducing Snap's ad revenue. That's not a long-term problem, but it's never fun to see technical glitches making a significant difference to a tech company's business results."
Shares of Snap fell 24.3% in August 2025 and dropped another 17% after modest commentary and soft guidance following second-quarter results. Snap guided to 476 million daily active users for Q3, a 7.4% year-over-year increase that decelerates from the prior quarter's 9% and from double-digit growth in 2023. Snapchat suffered an advertising-system glitch that produced very low ad-spot auction prices and reduced ad revenue before the issue was fixed. Advertiser demand for Snap's ad inventory remains strong despite macroeconomic headwinds. The company faces a challenging turnaround as slowing user growth and technical issues increase uncertainty.
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