Snap Inc. (NYSE: SNAP) reported better-than-expected first-quarter results but saw its shares plunge over 14% in pre-market trading after the company opted not to issue financial guidance for the second quarter, citing macroeconomic headwinds and growing uncertainty around advertising demand.
The company posted a first-quarter loss of $0.08 per share, beating analyst estimates of a $0.13 loss. Revenue totaled $1.36 billion, slightly ahead of consensus expectations of $1.35 billion.
Despite the stronger financial performance, Snap warned that a soft start to the current quarter and broader economic challenges could weigh heavily on advertising spending, prompting the decision to withhold formal Q2 guidance. Management noted that evolving macro conditions make forecasting highly uncertain in the near term.
On the user growth front, Snap continued to build momentum, with daily active users reaching 460 million, up 9% from a year ago. Monthly active users surpassed 900 million, bringing the company closer to its long-term target of 1 billion MAUs. Growth remained strongest in the Rest of World region, where DAUs rose 16% year-over-year, while North America and Europe posted more modest gains of 1% and 3%, respectively.
Currently, the consensus rating on Snap stock is “Hold” with an average price target of $11.10, implying more than 22% potential upside from Tuesday’s closing price.
As of the latest update, Snap (NYSE: SNAP) shares are down 14.19%, trading at $7.80.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
