Snap Gives Up The Ghost As Stock Crashes After Hours......Black Friday?
Snap plummets 22% after missing on revenue expectations
Snap stock fell 22% after reporting its third-quarter earnings on Thursday. The company’s revenue missed Wall Street expectations after its advertising business was disrupted by privacy changes Apple introduced earlier this year. Here’s what Snap reported versus Wall Street’s estimates:
Adjusted earnings per share: 17 cents vs. 8 cents by Refinitiv
Revenue: $1.07 billion vs. $1.10 billion forecast by Refinitiv
Global daily active users (DAUs): 306 million vs. 301.8 million per StreetAccount
Average revenue per user (ARPU): $3.49 vs. $3.67 per StreetAccount
Snap CEO Evan Spiegel praised Apple’s consumer-friendly changes on CNBC in February, when he also warned they posed a risk to Q4 earnings, but said on Thursday the iPhone’s privacy settings impacted Snap’s advertising business more than anticipated. “While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” Spiegel said in his prepared remarks. Source