Snap's stock fell as much as 17 percent to $11.40 a share in after-hours trading after it said revenue rose 153 percent to $182 million while net profit almost quadrupled to $443 million, or 16 cents a share. They noted that the move was a valuation call.
Though Evan Spiegel has said that he has a long-term plan for Snapchat, and is refusing to sell his shares in an attempt to show he has faith in his company's future, this probably isn't enough for investors. Citigroup Inc. reissued a "neutral" rating and issued a $20.00 price objective on shares of Snap in a research note on Thursday. Barclays PLC reaffirmed a "sell" rating on shares of Snap in a research report on Friday, April 14th. Shares in Snap were trading at $12.26 on Friday - almost half their opening price of $24 when the business floated in March. The stock has a 50-day moving average price of $15.27 and a 200 day moving average price of $19.19. Snap has a one year low of $11.90 and a one year high of $29.44. This is an important metric for Snap because because the company says it's a good indicator of its business growth - and a reflection of its strategy to push hard into more mature advertising markets. Traders acquired 65,962 put options on the stock. This represents an increase of approximately 173% compared to the typical daily volume of 24,199 put options.
"100 percent of the problems that we are seeing at Snapchat are self-inflicted", James Cakmak, an analyst with Monness Crespi Hardt and Co., told Bloomberg.
Snap made this disclosure as it reported another quarter of lower-than-expected earnings results, resulting in investors sending its stock down close to 17% in after-hours trading. Revenues which had been expected to be around $186 million dollars came in at a measly $181 million dollars. The business's revenue for the quarter was up 153.1% compared to the same quarter past year. The slowdown in user growth comes as larger rival Facebook continues to copy Snap's best features, rolling them out to its user base of over 2 billion users across various properties.More news: President Gets Opioid Crisis Briefing Today
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COPYRIGHT VIOLATION NOTICE: This story was first posted by Community Financial News and is owned by of Community Financial News. Below we provide some of the key takeaways from the company's earnings release. The original version of this article can be viewed at https://sportsperspectives.com/2017/08/10/snap-inc-nysesnap-posts-earnings-results-beats-expectations-by-0-13-eps.html. Institutional investors and hedge funds own 30.16% of the company's stock. JPMorgan Chase & Co. purchased a new position in shares of Snap during the first quarter valued at $252,388,000.
Excluding certain items, Snap lost 16 cents per share in the second quarter. Finally, Jennison Associates LLC bought a new stake in shares of Snap during the first quarter worth about $119,178,000.
As Snap becomes cheaper, the company could be attractive to acquirers, said Shebly Seyrafi, an analyst at FBN Securities.
Snapchat also recently introduced a new product called Maps, where people can see stories happening at locations around the world.