"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."
"On the upside, Snap reported robust demand for its ad inventory. Despite an unstable macroeconomic backdrop, advertisers are still buying ad space. At the same time, the company must fight to keep those Snapchat users coming. The slowing user growth may not look like a big issue at the moment, since Snap's revenue and profits still largely met management's guidance and Wall Street's estimates."
Snap's shares plunged after a modest management tone and softer next-period guidance, despite posting decent second-quarter results. Shares fell 24.3% in August 2025 and dropped 17% the day after results were released. Snap projects 476 million daily active users in Q3, a 7.4% year-over-year increase, down from 9% growth in Q2 and from prior double-digit gains. A recent advertising-system glitch caused ad-spot auctions to clear at very low prices and temporarily reduced ad revenue, though the issue has been fixed. Advertiser demand for Snap's ad inventory remained robust and revenue and profits largely met guidance and estimates. The company is pursuing product launches to boost user growth and engagement.
Read at The Motley Fool
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