A Cool Revenue Outlook Drags Down Snap's Stock

Shares of Snap (SNAP) were deed difficult successful extended trading Thursday, dropping aft nan Snapchat genitor offered a third-quarter gross forecast that disappointed investors.

The social-media company's shares tin move dramatically—in either direction—on its results, and coming was nary exception. Snap's banal was precocious disconnected immoderate 18%, extending losses of 3.8% seen during nan regular convention arsenic stocks fell broadly.

The institution successful a property merchandise said third-quarter regular average users would beryllium 441 million. That's much than Wall Street expected, according to estimates compiled by Visible Alpha. But its gross guidance for nan quarter, a scope of $1.335 cardinal to $1.375 billion, compared little favorably to nan $1.36 cardinal consensus.

Guidance for adjusted earnings earlier interest, taxes, depreciation and amortization besides came successful little than forecast.

"As we move guardant into nan 2nd half of 2024, we will stay focused connected prioritizing our investments cautiously to present against nan costs plans we person group retired for our business, while investing prudently to present for our organization and our partners," nan institution wrote successful a missive to investors.

Snapchat said it would connection further updates astatine a "Partner Summit" connected Sept. 17. Its news came a time aft the latest results from Facebook genitor Meta Platforms (META), shares of which roseate today.