Shares of Snap (SNAP) plunged 25% after the social media company reported weaker-than-
expected revenue for the third quarter as online advertising continues to slow.
Snap, which operates the Snapchat social media platform, reported earnings per share of $0.08
U.S. versus breakeven that was expected by Wall Street analysts. Revenue amounted to $1.13
billion U.S. versus $1.14 billion U.S. that had been forecast, according to Refinitiv data.
Snap’s net loss in Q3 surged 400% to $360 million U.S. even as its Daily Active Users (DAUs)
totaled 363 million compared to 358.2 million that was expected by analysts.
In August, Snap announced that it was laying off 20% of its 6,000 staff as part of a major cost
cutting plan.
In a conference call with analysts and media, Snap said that it wouldn’t give any guidance for
the current fourth quarter, the second consecutive time the company has declined to provide
any forecast.
However, Snap’s board of directors has approved a stock repurchase program of up to $500
million U.S. The company had $4.4 billion in cash on hand as of September 30.
Prior to today (October 21), Snap’s stock had declined 77% on the year and was trading at
$10.79 U.S. per share.
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