Snap Inc. investors may be feeling a sense of déjà vu on Wednesday, as the social-media company is once again tumbling in the wake of disappointing results.
(Bloomberg) — Snap Inc. investors may be feeling a sense of déjà vu on Wednesday, as the social-media company is once again tumbling in the wake of disappointing results.
The stock fell as much as 20%, putting it on track for a fifth straight quarter where its report was met with a double-digit selloff.
The Snapchat parent gave a revenue forecast at the lower end of analysts’ estimates, a sign it is still contending with weakness in its ads business. The outlook “indicates that trends remain soft, and the recovery is taking longer than anticipated,” wrote JPMorgan, which called the forecast “disappointing across the board.”
Snap’s report stood in contrast to Alphabet Inc., its much larger rival in the online advertising market. The Google parent climbed 6% following its own results, which beat expectations.
With the day’s drop, Snap is now down nearly 90% off a peak hit in 2021, though it remains 13% higher this year.
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