Snap is getting caught up in the social-media carnage
- Snap is under pressure Friday following a rough few days for social-media companies.
- Facebook and Twitter both reported disappointing user metrics this week and warned of a further slowdown ahead.
- Snap is set to release its second-quarter results on August 7.
- Watch Snap trade in real time here.
Snap is under pressure Friday following a rough few days for the outlook of social-media companies.
Shares are trading down almost 5%, and at their lowest level since June 8, after both Facebook and Twitter reported disappointing user metrics this week.
On Wednesday, Facebook said the average number of monthly active users during the second quarter came in at 2.23 billion, or about 20 million fewer than projected. The social-media giant also said that it thinks its annual growth rate would decline by the high-single digits. That news sent shares plunging by nearly 20%, wiping out $120 billion in market cap, and marking the biggest single-day wipeout in US stock-market history.
But the bad news for the social-media space didn't end there.
Friday morning, Twitter said its number of montly active users unexpectedly declined to 335 million during the second quarter, and that MAUs will continue to fall by mid-single digits in Q3. That sent Twitter shares spiraling lower by as much as 19%.
The rough couple of days puts Snap squarely in the crosshairs as it gets set to report its second-quarter results on August 7. The company is expected to post an adjusted loss of $0.18 a share on revenue of $251.6 million, according to analysts surveyed by Bloomberg.
Snap shares are down 13% this year.
