Stifel, for instance, has a neutral hold rating with a 10 price target. But Snap stock has just five buy calls from Wall Street analysts, according to FactSet, compared to 30 neutral ratings and 6 sell ratings. Several analysts raised their price targets and revenue estimates for Snap following the report. SNAP Stock: Middling Strength Compared To Market Analysts polled by FactSet were looking for $1.34 billion. Still, the firm said an 'internal forecast' predicts Q4 sales between $1.32 billion to $1.38 billion. 'While some of these campaigns have now resumed, and the impact on our revenue has partially diminished, we continue to observe new pauses and the risk that these pauses could persist or increase in magnitude remains.' 'We observed pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East, and this has been a headwind to revenue quarter-to-date,' the company's earnings release said. The company said the onset of war in the Middle East makes it imprudent to provide formal guidance. 'But a path toward several quarters of solid execution and clear traction toward profitability could well get us more constructive on the name.' War In Middle East Introduces Further Uncertaintyįurther, Snap declined to provide formal guidance for the current quarter. 'Snap is a 'show-me' story,' Mahaney wrote. But Mahaney maintained a neutral in-line rating on Snap, with a 10 price target that implies limited upside. Evercore ISI analyst Mark Mahaney noted some encouraging signs advertiser retention improved and the time users spent watching the app's Spotlight feature was up 200% year-over-year.Įvercore removed Snap from its 'Tactical Underperform' list following the report.

Wall Street ratings following the report remained mostly neutral. Meanwhile, European sales climbed 24% to $200 million and rest-of-world revenue jumped 30% to $202 million. North America revenue fell 3% year over year to $786.2 million. Santa Monica, Calif.-based Snap is also seeing stronger growth outside the U.S. Spiegel said Snap is seeing faster growth for direct-response advertising, which prompt users to take an action such as buy a product or download an app. Snap users can pay $3.99 per month to receive early access to new features and app updates through the service. That includes the Snapchat+ service, which Spiegel said reached more than 5 million subscribers during the quarter. SNAP Stock: A 'Show Me Story'Ĭhief Executive Evan Spiegel said in a letter to investors that the sales rebound was helped by the company's work 'cultivating new sources of revenue to diversify our top-line growth to build a more resilient business.' Snap stock is off nearly 90% from a high point in September 2021. But the company has struggled mightily since surging at the onset of the pandemic. Snap stock had gained 8.5% on the year before its earnings report Tuesday. Analysts projected the company would reach 405 million monthly active users, according to FactSet. Snapchat had 406 million daily active users as of September, up 12% from the same period last year.

Snap's revenue increased 5% from the same period last year, ending a series of back-to-back revenue drops. Still, the company posted a $368 million loss on the basis of generally accepted accounting principles, widening a $360 million GAAP loss from the same quarter last year. Analysts expected the company to post an adjusted loss of 4 cents a share on sales of $1.11 billion, according to FactSet. 30, Snap reported adjusted earnings of 2 cents per share on revenue of $1.19 billion. Snapchat Records 12% User Increaseįor its third quarter ending Sept. But Snap's note that some advertisers paused campaigns in response to the Israel-Hamas war appeared to spook some investors.

The company posted an earnings beat along with the revenue increase. Shares swung wildly in after-hours trading following the report Tuesday, climbing as much as 20% before sinking to a 5% loss and ultimately ending flat. On the stock market today, Snap stock is trading up a fraction at 9.76 in recent action. To Snap stock analysts, the earnings show efforts to bring advertisers back to Snapchat are paying off-but the company needs to show more progress toward profits. Shapchat-parent Snap ( SNAP) late Tuesday reported a 5% revenue increase for the third-quarter, its first quarterly rise this year.

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