Snap's Earnings Report Was Better Than You Think
Snap (NYSE: SNAP) shares were getting shellacked after the social media company turned in a disappointing third-quarter earnings report.
Shares plunged more than 20% Friday morning after the company missed revenue estimates for the third quarter and offered underwhelming guidance for the current period. Q3 revenue increased 57% to $1.07 billion, but that was short of the company's guidance and the analyst consensus of $1.1 billion, while management guided for Q4 revenue of $1.165 billion to $1.205 billion, or just 30% growth at the midpoint. That was well short of analyst expectations of $1.36 billion.
The culprits weren't a big surprise. Snap noted headwinds from Apple's new ad-tracking policies as well as the global supply chain disruptions and labor shortages, which are impacting ad spending because businesses are reluctant to spend to increase demand if they can't fulfill it. Despite the stock's post-earnings tumble, there were a number of positives to come out of the report, showing that the pullback may be just a blip.
Source Fool.com
