Snap earnings: As Facebook and Google challenges build, a new approach
Snapchat is being battered by Instagram, and now even Google could be aiming for Snap Inc.’s social platform, but the messaging company hopes a favorite Facebook tactic can help. Snap SNAP, +4.15% approaches Thursday’s earnings report facing doubts that it will be able to withstand Instagram’s Stories clone and turn around huge losses — doubts that pushed the stock lower than its IPO price even before the lockups expire.
Snap closed Tuesday at $13.02, nearly $4 down from the IPO price and more than 55% below the peak price paid for shares since Snap went public in March. Snap’s recovery plan includes acquisitions that have provided a fun way to share your location, paired with a fun way to use that location information to prove Snapchat’s worth to advertisers.
Snap Earnings Preview: Balancing User Growth And Revenue Per User
Snapchat parent Snap Inc. reports second-quarter earnings after market close on Thursday, August 10. Since going public in March, shares have declined past the company’s initial public offering (IPO) price of $17 and recently hit a new low of $11.91 on August 3.
Like other social media companies that have gone public, some of the main focuses among analysts have been on Snap’s user growth, average revenue per user (ARPU) and the company’s path to profitability. In last quarter’s results, Snap reported daily active users grew from 122 million in Q1 2016 to 166 million in Q1 2017, but that growth slowed on a sequential basis.
Snap’s ‘Make or Break’ Moment Has Arrived
Snap Inc. (SNAP) will have a lot to prove when it reports second-quarter results after Thursday’s closing bell. Investors will be laser focused on whether the newly public social media company can demonstrate user growth, narrowing losses and momentum in its advertising business. On top of that, Snap also faces pressure to show that it’s successfully fending off competition from Facebook Inc. (FB) , which has mimicked feature after feature from its younger social media rival.
Wall Street expects Snap to report a loss of 30 cents per share on roughly $186 million in sales. Daily active users are expected to increase modestly to 174 million, compared to the 166 million it had during the previous quarter. That number still pales in comparison to the 250 million daily users on Facebook’s Instagram Stories — its copycat version of Snapchat Stories, which allows users to post videos or images that disappear after 24 hours.
On the Tape Today | 8-10-17
TRIP-Trip Advisor missed earnings but staged a vicious reversal that sets up a short squeeze rally. This type of rally is fast and a momentum trade only. Price action took out the sell stops, and triggered the buy stops-- all in one day. Game planning a $41 buy stop for a new swing trade with a target to sell in the $46-48 range. I don;t plan to enter if the buy stop is not filled. Stop loss on a close below $40.
Stock Market Sector Performance
Stocks to Trade | 8-10-17 Thursday Edition
Bullish Momentum: HTZ, CAR, CLR, RSPP, VNTV, BZUN, TRIP, CF, WB, NVDA (earnings today)
Bearish Momentum: aaoi, teva, fnsr, mpc, apa
Bullish Order Flow: HD, NVDA, CCI, AAPL, BIDU, ADBE, BABA, FB, UNH, CAT, MA, AET, PNC, GRUB, TTWO, SNI,
Bearish Order Flow: fnsr, sbgi, viab, cah, nov, sbux, mnk, apa, stx, ual, pe, ibm, mo, hp, hal, slca
Double Normal Volume: TEVA, MYL, HTZ, DIS, TRIP, VNTV, ADP, CLR, WB
Inside Days: aapl, msft, x, bmy, cop, hal, nem, mur, aa, wmb, crm, unp, oxy, adm, bhge, rh
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