Originally published May 24th, 2022:
Snapchat shares just had their worst day ever, trading down 43%. A very bearish downward guidance revision released last night is to blame.
The official 8-K from SNAP (filed after market close on Monday May 23rd) reads: “Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range.”
Snapchat stock is down 73% YTD, but the long-term fundamental story at the company is more interesting. After burning over $3 billion in cash cumulatively since the end of 2014, Snapchat has now put together three consecutive quarters of positive free cash flow. Baby steps.
Let us know what you think of Snapchat’s business in the comments. Follow us on Instagram for more Snapchat coverage going forward.