SNAP - Why Snap Stock Is Plummeting This Week
2024-02-09 10:43:14 ET
Snap (NYSE: SNAP) stock is getting crushed this week. As of 10:15 a.m. ET Friday, the social media company's share price was down 34.3% from where it traded at the end of last week, according to data from S&P Global Market Intelligence .
Snap published its fourth-quarter results on Tuesday, and both its performance and guidance fell short of expectations in key areas. While the company reported non-GAAP (adjusted) earnings of $0.08 per share -- beating the average analyst's estimate of $0.02 per share -- its $1.36 billion in sales missed Wall Street's consensus target of $1.38 billion.
Snap recorded 414 million daily active users (DAUs) in Q4, up roughly 10% year over year and 2% sequentially. That user growth was actually better than anticipated, but its sales conversion rates were less encouraging. The $3.20 per in average revenue per user (ARPU) that the business posted came in significantly below the $3.47 in ARPU that it posted in the prior-year period.
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Why Snap Stock Is Plummeting This Week