Snap's "Flat" Revenue Growth
Photo by Rubaitul Azad / Unsplash

Snap's "Flat" Revenue Growth

Plus, Seagate production cuts.

Steven Lerner
Steven Lerner

Today is Friday, July 22, 2022.

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Snap's "Flat" Revenue Growth

Shares of Snap (NYSE: SNAP) declined 26.79% in after-hours trading on Thursday after the camera and social media company posted negative financial earnings.

Financials: Snap posted a loss of 2 cents per share and revenue of $1.11 billion; both were below estimates.

The Good: Daily Active Users increased 18% year-over-year to 347 million, which was better than expected. The company expects to have 360 million users this quarter. Snap also introduced a $500 million stock buyback program.

The Bad: Snap’s rate of revenue growth has slowed down. So far in the third quarter, revenue is “approximately flat” on a year-over-year basis. As a result, Snap said it will slow its rate of hiring.

Headwinds: Snap blamed its problems on platform policy changes (this includes mobile platforms), macroeconomic challenges, and increased competition.

Big Picture: As a result of Snap’s earnings, other social media stocks also fell in after-hours trading. Facebook’s parent Meta (Nasdaq: META) fell 4.68% and Twitter (NYSE: TWTR) dropped 2.05%.

Outlook: Due to “uncertainties related to the operating environment,” Snap did not provide any guidance for future quarters.

Numbers: Snap’s stock is down 74% in the past 12 months.

Final Thoughts: A troubled economy could be bad for ad spending, which hurts platforms such as Snap.


Notable Earnings Today: Twitter (NYSE: TWTR), Cleveland-Cliffs (NYSE: CLF), Verizon Communications (NYSE: VZ), American Express (NYSE: AXP), Schlumberger (NYSE: SLB), NextEra Energy (NYSE: NEE), NextEra Energy Partners (NYSE: NEP), HCA Healthcare (NYSE: HCA), Regions Financial (NYSE: RF), Autoliv (NYSE: ALV), Gentex (Nasdaq: GNTX).

Notable IPOs Today: Greenwave Technology Solutions, Inc. Common Stock (Nasdaq: GWAV).

Notable Equity Crowdfunding Campaigns Ending Today: 66 Greenpoint (Mainvest), Poppytots (Mainvest).

Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET).

Seagate’s Production Cuts

The inside of a hard drive is exposed.
Photo by benjamin lehman / Unsplash

Shares of Seagate Technology Holdings (Nasdaq: STX) dropped 11.37% in after-hours trading on Thursday after the data storage company posted negative financial earnings.

Financials: Seagate reported earnings per share of $1.59 and revenue of $2.63 billion; both were below estimates.

Challenges: Due to macroeconomic concerns, the company plans to reduce its production plans.

Final Thoughts: Seagate’s stock is down 26% in 2022, falling just like the rest of the tech sector.

Equity Crowdfunding Spotlight: WingTips

Briefly describe your business. WingTips is a regional air mobility airline, offering flights of 100-400 miles on business aircraft. WingTips fliers travel four times faster than driving or airlines for these routes. Our unique technology groups requests together.

What are the terms of the investment for your campaign? Convertible Note, terms are on WeFunder.

What makes your startup special? Why will it succeed? We have a roadmap that puts us ahead of the competition and keeps us there. We are already operating in the West and expanding to other regions of the U.S. this year. Our competitors are still talking about getting started.

Flying High: American and United airlines return to profitability (CNN)

Dr. Amazon: How Amazon’s $3.9 billion wager on primary care could change your Prime membership (MarketWatch)

Past-Due Account: AT&T Warns That Customers Are Slower to Pay Monthly Bills (The Wall Street Journal)

Faker Alert: Fake crypto apps have stolen over $42 million from investors in under a year, warns FBI—how to stay safe (CNBC)

Meme Stock Time: Why investors love GameStop’s stock split (Quartz)

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