Snap Shares Plummet 39% Following Q2 Results, The Company Provides No Guidance

Snap Inc. (NYSE:SNAP) shares closed around 39% lower on Friday following the company’s Q2 results and no guidance. Q2 EPS came in at ($0.02), better than the Street estimate of ($0.20). Revenue was $1.11 billion, missing the Street estimate of $1.15 billion.

The company ended the quarter with 347 million DAU (Daily Active Users), which represents an 18% year-over-year increase. The company provided no guidance for Q3 guidance due to uncertainties related to the operating environment.

A number of brokerages downgraded the company’s shares following the results. Oppenheimer analysts adjusted their rating to perform from outperform, removing their $22 price target.

According to the analysts, the company is now facing too many headwinds for investors to underwrite stock in the medium-term—TikTok, SKAdnetwork 4.0 & rise of Retail Media Networks —before they factor in slower consumer spending in Q4 and in the first half of 2023. The analysts lowered their revenue growth estimates to 8%/10% year-over-year from the previous 24%/33%.