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Photo app: Shares of Snapchat operator collapse

The shares of the photo app operator Snap have fallen by almost a third. Wall Street reacted to the company’s latest figures. Accordingly, Snap missed analysts’ sales expectations and also startled investors with a surprisingly high loss forecast for the current quarter. In after-hours trading on Tuesday, the shares temporarily fell by more than 31 percent.

For the current quarter, the company, which operates the photo app Snapchat, expects sales of between $1.095 and $1.135 billion. At the same time, the company expects a loss before interest, taxes, depreciation and amortization. This should be between 55 and 95 million dollars.

In the fourth quarter of last year, Snap’s revenue was around $1.36 billion. Analysts had expected $1.38 billion. The company’s annual revenue was $4.6 billion in 2023 – unchanged from the previous year.

Snap wants to cut a tenth of its jobs

Earlier this week, Snap announced significant job cuts. According to this, around 10 percent of jobs will be lost. Around a fifth of the jobs had already been cut in August 2022.

Snap used to grow rapidly. The now slow sales growth at best is probably also related to the strong competition – for example from Google and the Facebook group Meta.

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