On Friday, shares of Snap (SNAP -17.52%) plummeted after the company released its first-quarter financial results. Snap, the parent company of social media platform Snapchat, reported a decline in revenue from $1.063 billion to $989 million, which fell short of expectations (Barron’s). As a result, the stock tumbled 20% in after-hours trading (TechCrunch).
The weak earnings report caused Snap’s stock to open nearly 20% down on Friday (InvestorsObserver). During regular trading hours, the stock was down 18.7% to trade at $8.53 (Schaeffer’s Investment Research). The decline in revenue highlights the ongoing struggles of the advertising industry, demonstrating that it’s still stormy for Snap in advertising (MSN).
Investors are wondering whether this dip presents a buying opportunity. However, the outlook is uncertain, as Snap’s revenue has been on a decline for some time now (InvestorsObserver). Despite this, analysts believe that Snap’s investment in augmented reality technology could be a potential savior for the company (The Motley Fool).
However, Snap isn’t the only social media company that’s struggling. Pinterest also posted a weak Q2 outlook, leading to a decline in the company’s stock (Yahoo Finance). Even Amazon is facing challenges, with its cloud computing business showing further signs of cooling (The Wall Street Journal).
Multiple stocks are posting the largest moves in premarket trading, with Snap being one of them. Other companies include Intel, First Solar, and ExxonMobil (CNBC). Overall, it seems that the current state of the economy is causing multiple disruptions across various industries, with Snap’s decline in revenue a notable example.
