Popular American camera and social media company, Snap Inc. (NYSE: SNAP) could not refrain itself from the after effects of global economic slowdown. The macroeconomic situations which made even the most prominent stocks and indexes tumble, did not marginalize SNAP stock.
Snapchat’s parent company witnessed slow growth over the year from a broader perspective. However, how the year went along with the last quarter of 2022 will be discussed at the quarterly conference call scheduled to take place on 31st January 2023.
The Q3 earnings release of Snap was not on par with the expectations but maintained the dignity with not creating much riffle between the estimated and reported financials. Earnings per share (EPS) for SNAP stock was reported 0.11 which remained slightly less than the estimate. While the company’s revenue reported 1.13 billion USD, in contrast with expected 1.15 billion USD.
Snap not increase in “snap” but eventually will
Analysts believe that the company has potential to perform better as soon as the market conditions get better. Given its revenue sources: direct to customer revenue in the form of a small subscription fee and the other one is from businesses which paid for advertisements. The latter holds the majority part of its revenue though.
Since the market is going through a slowdown, businesses are spending less for advertisement purposes. Snap reportedly witnessed a drop of 6% in revenue during third quarter of 2022, given the advertisers money pulled back.
However, the company did continue to grind and explored new augmented reality powered tools to leverage for advertising purposes. Clothing company American Eagle reported to use the tool in Q3 this year seeking the users engagement making them engage with multiple outfits virtually. The campaign turned out to be successful as the numbers were tremendous, it attracted 11 million impressions of 30 seconds each.
Such developments leave room for growth for the social media company to make its place with bang as soon as the market gets on track.
SNAP stock is currently trading at 9.14 USD after losing about 1.2% in the last 24 hours. The share price is down by 89% from its all time high and about 78.07% year over year. Considering this, stock is available at discounted price and holds the growth potential.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/01/06/snap-stock-price-holds-growth-potential-after-companys-performance/