In this video, I will be going over Snap's (SNAP 3.03%) second-quarter earnings report and explain why it should not be compared with other social media and ad tech companies. The likes of Pinterest, Alphabet, Meta Platforms, Roku, and The Trade Desk are all down after Snap's disastrous report as predicted in my last video. Here's more on Snap:
- Management is not providing guidance for Q3 and has said that lack of demand is the primary issue.
- While the amount of users on the platform continues to grow, the monetization of those users is decreasing.
- The company also announced a $500 million stock buyback program, which makes no sense because the company isn't profitable.
- It wasn't so long ago that management was confident it could grow 50% for several years.
- Investors shouldn't be scared away from the companies mentioned above because of Snap's horrible quarter, but look at it as an opportunity.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of July 21, 2022. The video was published on July 22, 2022.
