Snap Stock Crashes 28% Following Q3 Results
<p><a href='https://financialmodelingprep.com/financial-summary/SNAP'>Snap (NYSE: SNAP)</a> shares plummeted more than 28% on Friday after the company’s reported its Q3 results, delivering its slowest revenue growth since going public. Q3 EPS was $0.08, beating the Street estimate of ($0.24). </p>
<p>Revenue increased 6% year-over-year to $1.13 billion, slightly better than the Street estimate of $1.12 billion. Daily Active Users (DAUs) were 363 million, representing 19% year-over-year growth. The company gave no guidance for Q4 revenue or adjusted EBITDA given uncertainties related to the operating environment.</p>
<p>While DAUs surprised to the upside, all of the beat was driven by ROW net additions which monetize at a fraction of US/European users, and are unlikely to be a meaningful revenue driver in the near term. </p>
<p>Analysts at Deutsche Bank provided their views on the report, lowering their price target to $9 from $14. With limited visibility around a potential rebound in advertising growth given (1) the softening macro backdrop, (2) growing competition for experimental budgets, (3) engagement shifts away from high-monetizing Stories, (4) user growth that is increasingly skewed towards lower-monetizing regions, and (5) time spent on content in the US declining, the analysts struggle to identify a clear and sustainable inflection point to the upside. </p>

NYSE:, SNAP