Snap Inc. (SNAP)
After hours:
- Reuters
UPDATE 1-Big Tech earnings show digital ads market not out of the woods
After a challenging 2022 in which advertising-dependent companies faced shrinking budgets and cratering stock prices, fourth-quarter results this week from Alphabet, Meta Platforms and Snap showed they were not yet in the clear. The health of the advertising industry closely mirrors the economy, and many advertisers have pared back their marketing budgets in response to record-high inflation rates and continued uncertainty about a recession. "While many people do not believe we will see that serious a recession, weaker sentiment among corporates has been enough to already feed into lower spending on digital advertising," said Russ Mould, investment director at AJ Bell.
- Motley Fool
Snap Stock Got Crushed Again, but Here's Why I'm Still Holding
The social media company known for its disappearing messages got crushed again by a challenging ad market, and the stock fell by double digits on Wednesday. Revenue in the quarter was flat at $1.3 billion, which matched analyst estimates, and the company's adjusted earnings per share of $0.14 fell from $0.22 in the quarter a year ago -- though that still beat the consensus at $0.11. It lost $289 million on a GAAP basis, and the company continues to spend aggressively on share-based compensation, despite promises to reel it in.
- Reuters
Big Tech earnings show digital ads market not out of the woods
After a challenging 2022 in which advertising-dependent companies faced shrinking budgets and cratering stock prices, fourth-quarter results this week from Alphabet, Meta Platforms and Snap showed they were not yet in the clear. The health of the advertising industry closely mirrors the economy, and many advertisers have pared back their marketing budgets in response to record-high inflation rates and continued uncertainty about a recession. Google-owner Alphabet Inc on Thursday reported a slight fall in quarterly ad revenue, missing Wall Street expectations and surprising investors as the world's largest digital ad platform has traditionally been resilient compared to smaller rivals.
