Does Snap Stock Still Deserve Its Premium Valuation?
Snap (NYSE: SNAP), the parent company of Snapchat, recently posted its second-quarter earnings. Its revenue rose 17% annually to $454 million, beating estimates by nearly $10 million.
Its net loss widened from $255 million to $326 million, as its adjusted EBITDA loss widened from $79 million to $96 million. Its non-GAAP net loss widened from $0.06 to $0.09 per share, but still beat expectations by a penny.
Snap's headline numbers beat Wall Street's expectations, but its stock slid 6% after the report. That pullback wasn't surprising since Snap's stock had already rallied over 50% this year and was trading at 16 times this year's sales. But was it justified? Let's dig deeper to see if Snap still deserves its premium valuation.
Source Fool.com
