Social network Snapchat (NYSE: SNAP) will be reporting earnings this Monday after market hours. Here’s what you need to know.
Snap met analysts’ revenue expectations last quarter, reporting revenues of $1.53 billion, up 12.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Snap a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Snap’s revenue to grow 14.5% year on year, improving from the 8.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Snap has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Snap’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 61.1%, beating analysts’ expectations by 9.9%, and Meta reported revenues up 28%, topping estimates by 1%. Reddit traded down 21.8% following the results while Meta was also down 7.9%.
Read our full analysis of Reddit’s results here and Meta’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Snap’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $7.26 (compared to the current share price of $4.73).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.