Snap’s share price plummeted 43% in a single day after the company
announced it was likely to miss its Q2 sales estimate just 5 weeks after issuing this projection in its Q1 earnings.
Other social media stocks were dragged down as investors feared a similar tragedy. The largest of them all,
Meta (Facebook) was down 8%, while Alphabet was down 5%.
The question we have now is whether these companies are a decent buy right now or if the headwinds are just getting started.
Snap Q1 earnings
To gain a better perspective, let’s review Snapchat’s Q1 results and Financial Guidance from a month ago.
User Metrics
- Daily Active Users grew by 18% year on year to 332 million.
- Average revenue per user increased 17% year-over-year
Financial Results:
- Revenue increased 38% year-over-year to $1,062.7 million
- Net loss increased to $359.6 million, compared to $286.9 million in Q1 2021
Q2 2022 Outlook
- Revenue growth year-over-year is estimated to be between 20% and 25%
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