Snaptchat parent Snap kicked off earnings season for social media and tech companies today on a sour note with solid user numbers but lower than expected revenue and a dime outlook for the fourth-quarter where sales are expected to be flat.
That forecast spooked the Street with Snap down over 25% in late trading. Snap is seen as a bellwether for digital advertising ahead of numbers coming next week from Facebook parent Meta, Google parent Alphabet, Amazon, Twitter and others.
Those stocks also lost some ground after-hours but nothing comparable. Snap’s daily active users, or DAUs, hit 363 million, an increase of 19% form the year before and above the 358+ million anticipated.
Net losses widened to $360 million — including restructuring charges of $155 million — from $72 million in the year-earlier quarter.
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