Snap stock falls after Q1 earnings results

Yahoo Finance's Jared Blikre breaks down Snap's stock reaction following a Q1 revenue miss.

Video Transcript

BRAD SMITH: And everyone, let's take a look at Snap shares. The brand of Ghostface Killah seeing its shares moving lower by about 3.2% right now on the immediate reaction to earnings after the companies reported their Q1 earnings. Jared Blikre standing by and breaking down these numbers for us. Hey, Jared.

JARED BLIKRE: Hey, the number is not looking good there. The stock plummeted 22.9%, all the way to $22.66 on some [INAUDIBLE] misses here. It's really about the forecast for the second quarter. They are seeing revenue of 20% to 25%. Might think that's decent, but the estimate was for quite a bit higher, 28%. Also seeing adjusted EBITDA of $0 to $50 million. Estimate is for $145.1 million, so they might not even make any profit on an EBITDA basis in the second quarter. It doesn't get much better for the first quarter.

As you can see on your screen right there, adjusted EPS, well, that came in negative. And the estimate was for-- let's see here-- EPS of $0.64. That came in at negative $0.02. And let's check out the daily active users. They actually beat on this metric, so not a Netflix situation, 332 million, up 19% year over year. Estimate was for 330.5 million. And then the other key stat, average revenue per user, that was $3.20. The estimate was for higher, $3.24.

Also saying their macro headwinds in the first quarter included supply chain disruptions, labor shortages, inflationary pressures, and the impact of rising interest rates. Those remain challenges entering into the second quarter. That's from the earnings report. Again, just a disaster there in terms of the initial price reaction. We'll have to see what comes after the earnings call, guys.