Why Snap Stock Declined Today
Shares of Snap (NYSE: SNAP) have declined today, down by 3% as of 12:20 p.m. EDT, after the Snapchat parent announced a private offering of convertible senior notes. The move comes after the stock skyrocketed 37% yesterday following strong first-quarter earnings results.
Earlier this week, Snap said it added 11 million daily active users (DAUs) in the first quarter, bringing total DAUs to 229 million. That helped revenue soar 44% to $462 million. While the tech company meaningfully improved its cash burn, with free cash flow going from negative $78 million to just negative $4.6 million, that figure is still in the red. Operating cash flow was positive for the first time ever, and Snap finished the quarter with around $2.1 billion in cash on the balance sheet.
Image source: Snap.
Source Fool.com
