Snap reported mixed signals in the quarter: revenue narrowly beat estimates at $1.345 billion while net loss per share matched expectations at $0.16. Daily active users rose 9% year-over-year to 469 million and monthly active users increased 7% to 932 million, indicating steady user growth. Shares have declined 33% year-to-date after two missed earnings reports and face fierce competition from Meta, Alphabet and ByteDance for engagement and advertising dollars. Several major analysts maintained Neutral ratings or downgraded outlooks and flagged slowing audience momentum and regional weakness, particularly in North America. SNAP traded lower near $7.23.
Despite long-term growth potential, Snap has struggled to keep pace with rivals. Shares have plunged 33% year-to-date after the company missed earnings expectations in its last two quarters. The stock's underperformance reflects intensifying competition from Meta Platforms' (NASDAQ: META) Facebook and Instagram, Alphabet's (NASDAQ: GOOGL) Google and YouTube, and ByteDance's TikTok, all vying for user engagement and advertising dollars. Also Read: Snapchat Parent To Launch Light Weight AR Smart Glasses To Compete With Meta, Apple On August 6, Snap released second-quarter results that highlighted both progress and ongoing challenges.
The company posted a net loss of 16 cents per share, matching Wall Street expectations, while revenue of $1.345 billion narrowly beat consensus estimates. User growth remained solid, with daily active users rising 9% year-over-year to 469 million and monthly active users climbing 7% to 932 million. Even with steady user gains, analysts remain cautious. UBS, Piper Sandler, and Guggenheim maintained Neutral ratings but lowered price forecasts following the earnings release. JMP Securities cut its rating from Market Outperform to Market Perform.
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