Snap Stock Bleeds on Q2 Earnings Results

Snap’s stock price had plunged an overwhelming 11% after hours on second-quarter earnings results. The company’s net loss had grown to a staggering $326 million, up 28% from the $255 million reported last year.

Snap had attributed the high losses on long-term investments “to build on the momentum we have established with our community, and our advertising partners,”, as well as higher interest expenses on convertible notes, and the sale of Placed - a location-based user data provider.

To be fair, Snap was able to make its comeback to 8% loss as investors eyed the other parts of the report, that painted the picture of daily active users being up almost 4% to 238 million as compared to April’s 229 million, and 17% as compared to last year's 203 million.

The company had further commented that so far in Q3, revenue is up 32% comparing to the previous year, but it expects that growth will moderate through the rest of the quarter, ending up at around 20%.

*The products advertised are only available to clients under Fondex Limited Seychelles (SDL No: SD037).