Why did Snap stock plunge today? More Pain in Stall Earnings (NYSE:SNAP)


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Instantaneous (NYSE: SNAP) tanked 28.1% Confirming its pre-market decline on Friday, after posting the worst revenue growth rate in its history despite strong user growth – leaving investors wondering how the company can the goose slows sales in a tough environment for ads.

The stock hit a nearly four-year low (its lowest point since February 2019, to be exact), and it had its worst trading session since — well, since July 22, the day after its last disappointing report on the results (it sank 39.1% That day).

The stock has fallen by double digits four times this year, and those four bad days took some particularly bad bites: Snap stock (SNAP) fell 10.2% on January 13, but slipped 23.6% February 3 after the 4th quarter results; slipped more than 43% on May 24 after warning that it would miss low-end projections in the second quarter; and fell 39% July 22, when he released those disappointing second quarter numbers.

Analysts worried about a “platform in transition” that could face execution risk and an overreliance on less proven brand advertising.

This happened even though Snap used its earnings call to say it was focused on reducing its reliance on brand advertising and increasing the performance of direct-response ads.

And in a stock market that saw broad advances, social media stocks were one of the few groups to post a decline as Snap’s contagion spread to rivals. Meta Platforms (META) closed the session down 1.2%; Twitter (TWTR) fell 4.9%; and Pinterest (PINS), which often evolves in concert with Snap, slipped 6.4%. Only Google, considered less prone to Snap issues than its peers, came out on top in the space: (GOOG) +0.9%; (GOOGL) +1.2%. These declines were reflected in a tough day for a key social media ETF (SOCL).


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