Down 79%, Is Snap Stock a Buy After Its Recent Earnings Release?
It's no secret that the digital advertising market is deflating, and Snap's (NYSE: SNAP) recent earnings report surely let even more air out of its balloon. After Snap posted second-quarter results on July 21, share prices of the social media company (best known for its app Snapchat) plunged more than 35%. The stock is down 78% year to date.
The earnings news wasn't a total surprise. Snap management issued guidance on May 23 stating the company would report both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) below its previous Q2 2022 guidance, due to a macroeconomic environment that has "deteriorated further and faster than anticipated."
Snap isn't alone in its sell-off woes. The Nasdaq Composite has cratered 19% since the start of the year as technology stocks as a whole continue to be slowed by macroeconomic headwinds. But after Snap's latest collapse, some investors are wondering if the social media company will ever recover. Let's explore the company's current financial position and see if we can find an answer.
Source Fool.com
