What Happened:
Shares of social network Snapchat (NYSE: SNAP) fell 19.8% in the after-market session after the company reported first-quarter revenue that missed analysts' revenue expectations, with both daily active users and revenue per user below expectations. EBITDA also missed. This marks the fifth straight quarter of topline revenue miss. SNAP’s business is likely experiencing company-specific issues, as advertising and social media peers have broadly reported fine to good results.
What is the market telling us:
Snap's shares are very volatile and over the last year have had 74 moves greater than 5%. But moves this big are very rare even for Snap and that is indicating to us that this news had a significant impact on the market's perception of the business.
Snap is down 3.05% since the beginning of the year, and at $8.58 per share it is trading 71.6% below its 52-week high of $30.16 from May 2022. Investors who bought $1,000 worth of Snap's shares 5 years ago would now be looking at an investment worth $598.74.
Is now the time to buy Snap? Access our full analysis of the earnings results here, it's free.