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Snap stock continues to plunge on disappointing third-quarter earnings


Evan Spiegel, CEO of SNAP Inc.

Etienne Desaulniers | CNBC

Shares of Instantaneous fell 29% in trading on Friday morning after investors continued to digest the company’s third-quarter earnings report released Thursday evening.

The company posted an unexpected profit, but revenue slightly beat estimates, coming in at $1.13 billion versus $1.14 billion expected, according to a Refinitiv survey of analysts.

The social media company has suffered from difficulties in the online advertising market. Apple’s 2021 data privacy update limited social media companies’ ability to track users online, which continued to hurt the company.

Bernstein analyst Mark Shmulik downgraded the stock Friday morning to market outperformance and cut its price target to $9 from $15.

In a note to investors, Shmulik signaled that there was still hope for the company: “SNAP’s untapped potential remains, but we’re unlikely to see a near-term turnaround. Winning back investors and our own confidence will take time.”

Barclays was more upbeat in its analysis of Snap’s performance, reiterating an overweight rating on the stock after saying Snap “has a long history of overcoming difficult transitions.”

The company has managed to continue growing in popularity, with daily active users increasing by 19% year over year.

Snap shares are down about 77% year-to-date.

– CNBC’s Michael Bloom contributed to this report.

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