When Snap (NYSE:SNAP) reports its second-quarter results, investors will be keenly examining the second-quarter earnings to determine how negatively the economy’s decline is impacting Snap chat, the social media platform. In turn, that will provide an insight into Meta Platforms (NASDAQ:META), the company that owns Facebook, regarding its future.
Snapchat’s stock has suffered this year due to worries about an impending recession and the ongoing difficulty of adapting to Apple’s (NASDAQ:AAPL) 2021 initiative to strengthen privacy by making it more difficult for advertisers to follow people’s online behaviour. Although it increased 9.6% to settle at $15.51 on Wednesday, the stock had decreased by 75% over the past 12 months.
The corporation cut its financial projections in May, citing an ailing economy. It declared that its adjusted EBITDA would probably be lower than the $0 to $50 million range that management had previously informed investors to anticipate in April.
Estimates are coming in with EPS at -0.21 and revenue to be $1.138B. This will be an increase from previous years, but at its slowest pace for at least 14 quarters.
The company’s third-quarter outlook will be a key focus, with estimates for 18% year over year revenue growth looking reasonable.
The numbers are due out after the close of trading today.