Snap (NYSE: SNAP) stock plunged 27% during after hours trading on Oct. 20 following the release of its third-quarter earnings report. The social media company's revenue rose 6% year over year to $1.13 billion, missing analysts' estimates by $10 million. Its net loss widened from $72 million to $360 million, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 58% to $73 million. But on a non-GAAP basis, earnings of $0.08 per share still beat the consensus forecast.
Investors had already been bracing for a rough report following Snap's dismal second-quarter release in July, but the latest news seemed to extinguish any hopes for a near-term recovery. Should investors shun Snap stock at these depressed levels, or should they take the contrarian view?
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