![]() The app has also added features to its Snap Map such as restaurant recommendations and information about upcoming concerts and shows in the area. The company has pushed brands to experiment with customizable advertising and shopping experiences that allow customers to try on clothes, accessories or beauty products on their phones. Snap has said it expects to deliver revenue growth of more than 50% for several years, in part on the strength of aggressive investment in augmented reality. The company projects that daily active users will climb to a range of 316 million to 318 million in the fourth quarter. The Santa Monica company reported a third-quarter net loss of $72 million, compared with the $145.26-million loss analysts expected. The ephemeral photo-sharing app Snapchat reported 306 million daily active users in the period, beating predictions of 302 million. That compared with the $1.1-billion average projection of analysts. In the third quarter, Snap reported sales increased 57% to $1.07 billion. Apple’s changes already were affecting Snap’s business in June and July, Spiegel said. Follow her on Twitter at and on LinkedIn. "The company would be well-advised to hopefully indicate that they're in position to relaunch the ad platform so that they can really benefit from what historically has been a really strong period for them - and that's the holiday shopping season."Īllie Garfinkle is a Senior Tech Reporter at Yahoo Finance. "We clearly saw that urgency when the company announced a pretty massive restructuring last August, but, since then, I think people are kind of wondering when the benefits of that restructuring are really going to manifest themselves."Īll that said, according to Kessler, there's still an opportunity to benefit from the ongoing restructuring project. "I think sometimes with Snap, it seems like there's lack of urgency coming from company leadership," Kessler said. Is restructuring the problem? Snap logo (zz/STRF/STAR MAX/IPx/AP Photo)Įventually, that pressure leads to questions about company leadership. "Nonetheless, I do think it's reasonable to ask: 'When is this going to be done, and when are you going to start being able to flip the switch and really capitalize on the investments that they've been making for a number of quarters at this point?'" "They've already embarked on this spending, so they can't just stop midstream," he said. ![]() In terms of the platform, the analyst added, there is an ongoing cost to figuring things out. "These challenges could be coming from the macro backdrop, could be coming from the fact that they've been overhauling their ad and technology platform or the fact it's a very competitive market." "I feel like I've seen this movie at least once or twice before, where Snap essentially is indicating there are some challenges," Kessler said. Overall, the stock has struggled mightily since its September 2021 peak. ![]() ![]() Snap stock is up nearly 20% so far in 2023 despite being down about 18% over the last five trading sessions. Snap, which owns the social media platform Snapchat, beat expectations in its Q2 earnings on Tuesday but offered weak Q3 guidance, sending shares into a decline of more than 17% in after-hours trading. ![]() To be able to truly execute, they need to be able to get their advertising technology and platform in place." Kessler, who does not have an official position on the stock, as Third Bridge does not provide Buy/Sell/Hold ratings, added that "I think it's appropriate to kind of wait and see in terms of what the company has to say. "To be honest, I don't know how people can feel comfortable ," Scott Kessler, the Third Bridge global sector lead for tech, media, and telecom (TMT), told Yahoo Finance Live (video above). Though other big names in tech are on the upswing after a tough ride last year, Snap (SNAP) still faces issues that are clearly giving investors pause. ![]()
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