5 Reasons to Buy Snap’s Stock After Its Post-Earnings Plunge
Snap's (NYSE: SNAP) stock recently tumbled after the social media company posted mixed fourth-quarter numbers. Its revenue rose 44% annually to $560.9 million but missed expectations by about $1 million. Its net loss also widened from $191.7 million to $240.7 million, mainly due to high stock-based compensation expenses.
However, Snap's adjusted EBITDA, which excludes its stock-based compensation expenses, came in at $42.3 million, marking a big improvement from its loss of $50.4 million a year earlier. That translated to non-GAAP earnings of $0.03 per share, which beat expectations by two cents.
Snap's report wasn't disastrous, but it clearly spooked the bulls and attracted the bears. But upon taking a closer look at the results, I believe Snap's strengths still outweigh its weaknesses, for five simple reasons.
Source Fool.com
