Breaking News

Snap’s Tailspin Will Worsen Into Earnings

By Estimize Stock MarketsMar 20, 2017 10:00AM ET
Snap’s Tailspin Will Worsen Into Earnings
By Estimize   |  Mar 20, 2017 10:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Snap Inc. (NYSE:SNAP): Information Technology - Internet Software & Services | Estimated Report Data April 25, After Market Closes.

Key Takeaways

  • Analysts at Estimize expect 57% decline on the bottom line to negative 17 cent per share on $193.25 million in revenue, roughly $395% higher than the same period last year.

Snap opened for public trading nearly two weeks ago with polarizing expectations about the near-term future. Many market commentators predicted the stock would fall flat due to weak underlying fundamentals but that didn’t stop millennials from grabbing a piece of the action.

At the outset, shares nearly touched $30 on a rich $40 billion valuation, making it more expensive than popular brands like Twitter (NYSE:TWTR), Hilton (NYSE:HLT) and Best Buy (NYSE:BBY). But its post-IPO twinkle lost its shine in a mere 2 days as much of the initial excitement started to fade. Snap now trades nearly $4 below its $24 debut price with new Wall Street analysts emerging each day to issue disparaging sell ratings. The most troubling trends analysts take exception with concentrate on Snap’s unclear path to profitability, questionable ability to draw in new ad revenue and decelerating user growth.

Snap Earnings
Snap Earnings

Although Snap calls itself a camera company, its core business still revolves around the 150 million daily active users sending messages that automatically disappear in a matter of seconds. In order to move higher, Snap must focus on driving users, which inevitably pulls ad dollars, -- not selling sunglasses that liken it to beleaguered camera maker GoPro (NASDAQ:GPRO).

Some fear that Snap already reached a critical mass of core users and doesn’t hold the same appeal with middle-aged or retired audiences -- one of the biggest differences between Facebook (NASDAQ:FB) and Snap. The Zuckerberg led network effectively provides users a platform to reconnect and catch up with past friends whereas Snap’s target audience doesn’t extend beyond millennials. Meanwhile, the launch of Instagram Stories, a near replica of SnapChat, puts Snap at risk of losing some of its established user base.

In any case, the “camera company” faces an uphill battle that will only worsen if quarterly results miss analyst’s targets. Initial estimates on Estimize forecast steepening losses and decelerating revenue growth. Analysts expect earnings to drop 57% to 17 cents per share on a 395% increase in revenue to $193.26 million. On the surface, projected revenue growth may be reassuring but compared to previous quarters when Snap was private, it reflects a slight slowdown.

Snap Revenue
Snap Revenue

What are you expecting for SNAP?

Original post

Snap’s Tailspin Will Worsen Into Earnings

Related Articles

Snap’s Tailspin Will Worsen Into Earnings

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email