Will Snap Have More Bad News When It Reports Earnings?

Will Snap Have More Bad News When It Reports Earnings?

Lindsey Duncan
February 7, 2018

Instagram is also wildly popular with young mobile users.

Snap rolled out a Do Not Disturb feature that allows Snapchat users to silence notifications from specific people and groups, keeping the muted parties in the dark. The Company offers three ways for people to make Snaps: the Snapchat application, Publishers Tools that help its partners to create Publisher Stories, and Spectacles, its sunglasses that make Snaps.

Snap shares are up about 23% this year. Analysts expected Snap to post revenue of $255 million and a loss of $405 million, meaning the company vastly out-performed its projected metrics. Twitter's expense of $600 million in 2013 was slightly less than its revenue, while LinkedIn had just a $30 million expense and $522 million in sales in 2011, the year it debuted on the market.

"Our work during 2017 is proof that we aren't afraid to make big changes for the long-term success of our business", said Snap, Inc. Now, it has 187 million daily active users, up from 158 million a year ago.

UK Services Slowdown Takes Shine Off Economic Optimism
The inflation in input prices in the services industry rose by its steepest level since April 2012 in January, the survey showed. The Caixin China General Services Business Activity Index rose to 54.7 last month, up from 53.9 in December .

Spiegel said in prepared remarks that were released alongside today's earnings that "Our business really came together towards the end of previous year". The figure is closely watched by investors who hope user growth can be translated into advertising revenue. A fresh design followed, and since then we've also heard that Stories will soon be available on the web. The business had revenue of $207.90 million during the quarter, compared to the consensus estimate of $236.71 million.

More recently, Snap released a new in-app merchandise store as it continues its experiments to see what users are willing to pay for.

Snapchat parent company Snap Inc. saw a big snapback in shares on Tuesday (Feb 6) as the youth-oriented social network reported stronger-than-expected revenue growth. Today is its chance to show that it's at least making progress on fixing those issues. BlackRock Inc. now owns 10,343,549 shares of the company's stock worth $183,805,000 after buying an additional 936,791 shares during the last quarter.

Options are pointing to a double-digit move in the shares, with $15 puts and calls the most widely held options.