Snap missed bottom and top line estimates for Q2 on Wednesday, but only marginally. The 17% drop in share price seems exaggerated. The social media company continued to grow its revenues and daily active users at 9% Y/Y. ARPU in Snap's core market is still growing and indicates healthy user monetization. However, Snap's losses increased Y/Y, leading to the creation of a new negative sentiment overhang.
Snap misses Q2 earnings estimates as AI ad gains and strong user growth are offset by higher R&D spend.
Snap says changing consumer behavior and tariff-related pressures are hindering advertising demand. The social media company released earnings Tuesday (Aug. 5) revenues of $1.34 billion, up 9% year over year, while advertising growth slowed to just 4%.
Snap's stock (NYSE:SNAP) experienced nearly a 20% decline in trading on August 5th, following the release of the company's Q2 earnings report. This drop was caused by a miss on revenue, Average Revenue Per User (ARPU), and EBITDA.
Snap (SNAP) shares snapped 20% lower Wednesday, a day after the operator of the Snapchat social media site posted a higher net loss and adjusted earnings missed forecasts as it dealt with an ad platform glitch.
Snap Inc (NYSE:SNAP) stock is one of the worst stocks on Wall Street today, down 20% to trade at $7.49.
Snap Inc. (NYSE:SNAP ) Q2 2025 Earnings Conference Call August 5, 2025 5:00 PM ET Company Participants David Ometer - Head of Investor Relations Derek Andersen - Chief Financial Officer Evan T. Spiegel - Co-Founder, CEO & Director Conference Call Participants Benjamin Thomas Black - Deutsche Bank AG, Research Division Daniel Salmon - New Street Research LLP Eric James Sheridan - Goldman Sachs Group, Inc., Research Division Justin Post - BofA Securities, Research Division Mark Elliott Shmulik - Sanford C.
Although the revenue and EPS for Snap (SNAP) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Snap (SNAP) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.01. This compares to earnings of $0.02 per share a year ago.
Ever volatile Snap shares fell 17% after market close as second quarter revenue growth was slower than it has been due in part to a mistake that made it cheaper than intended for advertisers to clear at auction. The company said its SVP of Engineering Eric Young is departing to pursue a new opportunity.
CNBC's Julia Boorstin joins 'Closing Bell: Overtime' to discuss Snap's Q2 earnings results.
Snap Inc (NYSE:SNAP) shares tumbled almost 15% after Tuesday's closing bell as the social media platform's second quarter earnings disappointed investors, with key metrics falling short of expectations. A loss per share of $0.16 was worse than the loss per share of $0.15 reported for the same period last year and earnings per share of $0.01 expected by Wall Street analysts.