Snap Inc. stock gained Thursday in volatile after-hours trading despite quarterly revenue not meeting Wall Street estimates.
The company reported The first quarter net loss was $359.6 million or 22 cents per share. This compares to the loss of $286.9 millions or 19 cents per share a year ago. According to FactSet analysts polled Snaps net loss was 2 cents per share. This is better than Street predictions of a loss in the 17-cent range.
Snaps sales increased 38% to $1.06billion, falling short of Street estimates at $1.07billion. Daily active users rose 18%, to 332,000,000.
Snap shares
SNAP,
Initial drop in after-hours trades, but rebounded to a 5% gain. It was up about 2% at the last check.
Snap Chief Executive Evan Spiegel stated in a statement that our first-quarter results reflect the underlying strength of our business in spite of a challenging operating climate.
These results demonstrate that Snap is a parent company to Facebook Meta Platforms Inc.
FB,
Apple Inc. privacy changes, TikTok, and still vulnerable
AAPL,
App developers will have a harder time tracking customers via ads.
Snap is less affected by IDFA (Identifier for Advertisers), but Snap is still vulnerable, Jasmine Enberg from Insider Intelligence, principal analyst, said to MarketWatch. She predicts that Snaps global online ad revenue growth will slow from 43% (2022) to $4.86 billion to 30% (2024) to $8.75 billion.
John Blackledge, Cowen analyst, expected a 39% increase in sales year over year on rising average revenue by user, according to an April 13 notice that maintained a market-perform rating of $40 and a price target of $40.
Snaps stock plunged 37.5% in 2022. The S&P 500 index
SPX,
This year, it has fallen by 8%
Snap has spent the last few decades building products and infrastructure in the same direction as Facebook, despite making headlines for its metaverse name change last year.
Snap announced its intention last month to purchase NextMind, the Paris-based neurotech startup. NextMind has developed a headband which controls aspects of a computer such as aiming a gun at a videogame or controlling other functions via thoughts. The technology will be integrated into future Snaps augmented reality glasses, Spectacles.
Snap bought AR display manufacturer WaveOptics last year for $500 million in its largest ever deal. It also acquired Compound Photographynics, a display tech company.
Meta has partnered with a host of startups to help kick-start its metaverse push.
