While Snap Inc. (SNAP) was already in a downtrend, its bearishness escalated in the after-hours on Wednesday. This downfall can be attributed to the fall of the social media giant Facebook’s parent Meta Platforms Inc. on weak earnings and outlook.
On February 02, 2022, SNAP had a value of $32.07 at the close of the regular session. During regular trading, the stock lost 4.72% at 41.65 million shares. The stock nosedived in the after-hours to lose 16.93% at $26.64 per share. Hence, SNAP lost a further $5.43 at an after-hours volume of 8.93 million on Wednesday.
The camera platform, Snap Inc.’s 1.36 billion outstanding shares trade at a market capitalization of $54.19 billion.
What’s going on?
SNAP is expected to announce its Q4 and fiscal 2021 results on Thursday, February 3, 2022, at 5:00 pm ET. Just a day before the company’s earnings, the industry giant Meta Platforms Inc. released its Q4 and fiscal 2021 financials. Facebook reported unimpressive growth in earnings and further expects milk growth in Q1 and fiscal 2022. The reason for this is the current sensation TikTok. More and more people are spending excessive time on the video app TikTok. Thus, making other social media platforms and apps suffer. With the bleak growth of Facebook and hit from its competition, SNAP’s investors seem disappointed in the stock itself.
Investors expect the stock’s growth to take a hit from TikTok as well, given that both share video making. The market situation suggests low growth for SNAP, causing the stock to dwindle but only the earnings themselves will reveal the truth.
SNAP’s CEO’s Latest Comments
On February 02, Wall Street Reporter published the latest comments from SNAP’s CEO, Evan Spiegel. Mr. Spiegel remarked on the opportunities for augmented reality for the company. According to him, over 200 million people already engage with augmented reality on daily basis on Snapchat. Presently, the company is working with its clothing and beauty product partners for the expansion of its AR shopping experience.
Moreover, Mr. Spiegel reported the growth of the company’s DAUs to 306 million. Thus, marking a growth of 20% YOY for the fourth consecutive quarter.
SNAP’s Q3 Overview
The company had a net loss of $72 million on revenue of $1,067 million in the third quarter of 2021. This marks an improvement of 57% and 64% year over year in revenue and net loss, respectively.
Read More: SNAP Stock Fell Further After Hours. Why?