Snap (NYSE:SNAP) stock is falling on Wednesday after the release of the social media company’s Q2 2023 earnings report.
SNAP stock is taking a beating today despite its adjusted earnings per share of -2 cents. That’s better than the -4 cents per share that Wall Street was predicting. It’s also the same as what was reported in the second quarter of 2022.
The Snap earnings report also includes revenue of $1.07 billion. Yet again, that manages to just squeeze past analysts’ revenue estimate of $1.06 billion for the quarter. Even so, it’s down 4% year-over-year compared to $1.11 billion.
SNAP Stock Q3 Outlook
Also included in this earnings report is the company’s outlook for the third quarter of 2023. This has it expecting revenue to range from $1.07 billion to $1.13 billion. That would see it beating out Wall Street’s revenue estimate of $1.02 billion for the quarter. However, it also represents negative revenue growth of 5% to flat compared to the same time last year.
Scott Kessler, Global Sector Lead for Technology Media and Telecom at Third Bridge, said the following about the Snap earnings to Yahoo Fiance:
“Snap, essentially, is indicating that there are some challenges. The challenges could be coming from the macro backdrop, could be coming from the fact that, you know, they’ve been overhauling their ad technology and platform, or the fact that it is, in fact, a very competitive market. All of that put together means that there are, I think, continuing issues that Snap has to overcome. And investors are not especially patient, especially at this point.”
SNAP is down 17.4% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
