Snap Stock Plummets 28%, Approaching 4-Year Low, After Grim Quarterly Report
deadline.comSnap Inc. investors registered a “no-confidence” vote today following the Snapchat parent’s earnings report, sending shares plummeting to nearly 4-year lows.
The stock fell 28% to close at $7.76 on trading volume that approached five times the normal level. The drop followed through on after-hours movement Thursday after the company warned investors it expects zero revenue growth in the fourth quarter. “Our revenue growth continued to decelerate in the third quarter,” the company said in a letter to shareholders, “and continues to be impacted by a number of factors we have noted throughout the past year, including platform policy changes, macroeconomic headwinds and increased competition.” The last time Snap shares were in their current price range, the company was struggling to overcome a series of high-profile exec departures, a deeply unpopular redesign and glitches with Snapchat’s app for Android devices.
That was during the early months of 2019. Since then, the company benefited from strong tailwinds as both users and advertisers grew more and more attached to the platform and spending on digital advertising surged.
In the most recent quarter, Snap reported $1.13 billion in revenue, which was up 6% over the prior-year period. That was the slowest rate of growth in any quarter since the company went public in 2017 and was below the 8% projection Snap offered last August.
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