Snap reported a second-quarter revenue increase of 9% year-over-year to $1.345 billion, falling short of the $1.350 billion estimate. The company also experienced a loss of 16 cents per share, slightly surpassing analysts' forecasts. A reported issue with Snap's ad platform caused reduced prices in auction wins for advertisers, contributing to the revenue miss. Analysts are cautious with neutral ratings as revenue growth lags behind competitors Meta and Reddit, reinforcing bearish sentiment towards Snap's competitive position in the ad market.
Snap's second quarter revenue increased 9% year-over-year to $1.345 billion, below estimates of $1.350 billion.
A tough Q2 will continue to reinforce the bear case that Snap cannot break out of being a smaller ad platform lacking the ability to durably grow its direct response business.
An issue with its ad platform caused some advertisers to win campaign auctions at substantially reduced prices, negatively impacting Q2 revenue.
Snap stock is down 17% at 7.77 in premarket action, expected to drop significantly below Snap's 200-day moving average.
Collection
[
|
...
]