Just when it appeared things could get no worse for social media company Snap Inc. (NYSE: SNAP), they did. Snap said its revenue in the most recently reported quarter was flat from a year ago, which is more than a catastrophe for a social media company. Snap management said its internal forecasts were for revenue to fall 2% to 10% in the current quarter. And the end of Snap’s growth marks the day the company’s downward spiral becomes irreversible. (Click here for the American tech companies that laid off the most workers last year.)
[in-text-ad]
For the quarter just reported, revenue was flat at a little below $1.3 billion. Snap posted a loss of $288 million, compared to a profit of $23 million a year ago. CEO Evan Spiegel commented, “We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community.” Every bit of information in the release argues against that.
Spiegel (and others) founded Snap in 2011. He remains chief executive and has stayed far too long. Snap competes with Facebook, Instagram and Twitter. It is rare that people use them all simultaneously. Plus, TikTok may have begun to drain market share as well.
In September 2021, Snap traded at over $80 a share. It probably will be as low as $10. There is no reason for it to trade higher.
24/7 Wall St.Snap finally has become a completely failed company. It does not have a product that will help it to recover. It relies on advertising, which is a choppy market, and advertising for social media is widely fragmented. Snap is near the bottom of the food chain.
Snap will stay in business, but that is about all it can say.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.