![]() So even though our revenue continues to grow year-over-year in the second quarter, it’s likely that revenue and EBITDA will come in below the low end of our guidance range. The macroeconomic environment has definitely deteriorated further and faster than we expected when we issued our guidance for the second quarter. Just one month later on May 23rd at an investor conference, SNAP stated the following: Those earnings results were released on April 21st. ![]() Snapchat 2022 Q1 Presentation Why Is Snap Stock Down? SNAP was still not profitable on a non-GAAP basis but did generate a 6% adjusted EBITDA margin.Īt the time, SNAP guided for revenue growth of up to 25% in the second quarter. The 4% sequential growth is particularly impressive when compared with the stalling sequential growth at Meta ( META) and sequential declines at Pinterest ( PINS). The strong growth came on the back of 18% average daily active user growth. That came in squarely within management’s guidance. The latest quarter saw SNAP deliver solid 38% revenue growth. The stock is priced as if growth will never return for the company, but such an outlook is arguably too pessimistic. At these prices, the stock is priced lower than its $17 IPO price in 2017. I previously covered the stock in March, when I rated it a strong buy on valuation. SNAP peaked above $80 per share but has somehow fallen 85% down to around $12 per share. This is the kind of stock I have been buying in the Best of Breed portfolio to take advantage of the tech crash. The stock is quite cheap here in an eventual recovery to stronger growth rates. Still though, there is much value to be had here, as the company continues to grow users at an enviable rate. The latest negative price action has been driven by the predicted guidance miss only 1 month after initiating guidance. The stock did not trade at such egregious valuations at the peak yet has still managed to crash 85%. Snap ( NYSE: SNAP) is a seemingly unlikely victim of the tech crash.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |