Is Cash Flow a Problem for Snap?
Snap (NYSE: SNAP) has been one of the hottest stocks this year, rising more than 180% since January. The company just released an improved earnings report and there's been a lot more bullishness around the stock again. However, that doesn't mean that all is fixed with the stock. Let's not forget it also ended 2018 at a lowly price of just $5.51 after the stock lost more than 60% of its value last year.
In its latest earnings, investors took away many positives from the company's results. The loss wasn't as bad as expected, revenues also beat estimates, as did global daily active users, which reached 203 million. As a result, Snap has continued rising in value. However, that doesn't mean that the company is out of the woods just yet.
Although Snap is posting smaller losses than expected and those results are an improvement from the prior year, it needs to get to a breakeven point sooner rather than later because the company is still burning through a lot of cash.
Source Fool.com
