Snap earnings: First report since IPO is major test for Snapchat parent company
Snap Inc. will face its first real test as a public company when the Snapchat parent company reports first-quarter earnings after the market closes Wednesday.
Snap SNAP, +3.83% had a highly celebrated IPO in March, but then saw it stock fluctuate as competition increased and analysts questioned Snap’s high valuation. Now, the key question for many investors is Snapchat’s daily user growth, which had been pressured in previous quarters.
Snap’s First Quarterly Earnings Report Will Reveal Facebook’s Impact
As it faces tough competition from Facebook (FB), Snapchat operator Snap (SNAP) will report its first quarterly results after the close Wednesday since becoming a publicly traded company in March.
A primary focus will be on user growth and revenue growth, average revenue per user and Snap’s ability to scale larger.
The consensus looks for Snap to report revenue of $157.5 million, up 306% from the $38.8 million it reported in the year-ago quarter. The consensus on adjusted earnings is a 19 cent loss, vs. a 9-cent loss in the year-ago quarter.
Snap’s first earnings report will show how much it’s feeling pressure from Facebook
For Snap, parent company of social media site Snapchat, raising money has come much easier than making it.
While its $3.9 billion initial stock sale in early March was the largest U.S. IPO in more than two years, the company has consistently reported huge losses.
And when it reports earning for the first time as a public company on Wednesday, investors will get a sharp reminder that it’s still not close to making a profit.
On the Tape Today | 5-10-17
UAL produced a solid breakout yesterday but traded into a Saturation Point. Expecting one more day of buying, and then a pull back to @ $76 area for a new long. If you bought on the $70 inside candlestick breakout, nice trade, look to exit today. Next trade setup is a $76.50 limit order to buy.
AKAM formed an inside day after bearish momentum exhausted itself. Looking for a few days of consolidation before the next short sale. Keep the stock on your watch list, plenty of room to go on a new short sale after the next pause. Game planning a new $53.75 limit order to sell short.
Stock Market Today: Heatmap of the S&P 500
Tape Reading the SPY ETF
“If it’s hard to find, it’s not there…”
I received this advice early in my trading career, and it’s kept a lot of money in my pocket. Too often we WANT something to happen, and force the situation. If the stock market were a book, the pages leading into today’s chapter would be blank.
With the continuation of incredibly light volume, and the VIX hovering near an anemic 10, all I see today is invisible ink.
No reason to be short, no reason to be aggressive. At best we will get a momentum trade today, which means a cash flow mindset.
Stocks to Trade 5-10-17 | Wednesday Edition
Bullish Momentum: TSO, BIDU, CTRP, TSLA, UAL, AAL AAOI
Bearish Momentum: agn, nue, stld, x, tsn, twlo
Long-Term Order Flow
Bullish Order Flow: MAR, UAL, TSLA, WYNN, BABA, AVGO, ADSK, DLPH, SWKS, DE, DXC, RH, NFLX, AAPL, HON , AET, HD, BA, AMZN, COST, UNP, EXPE, FB, UNH, WDC
Bearish Order Flow: twlo, x, apc, clr, oxy, oke, sm, dvn, ibm, eog, slb, tsco, akam, dfs, slca
2X Normal Volume: CTRP, MAR, EA, TSN, AAOI
Inside Days: snap, jd, kr, nbl, gild, coh, pypl, akam, luv, sm, celg, v, dvn, twlo, gsk, nem, skx, mur, pcar
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