Snap Inc, the creator of SNAP token and the parent company of Snapchat, has disappointed investors with its fourth-quarter results. The company’s failure to provide optimistic guidance has caused its shares to fall by over 25%, raising concerns about its future.
Investor disappointment with Snap Inc
Kamran Ansari, the Headline venture partner, expressed his disappointment with Snap Inc in an interview with Yahoo Finance. He noted that the stock has been underperforming for the past year and that the company is still losing a significant amount of money despite its revenue being similar in 2022 and 2023.
Disappointing quarterly results and forecast
Snap Inc’s quarterly results were below analysts’ projections, and the company’s forecast fell slightly short of Wall Street’s expectations. The firm has experienced six consecutive quarters of single-digit growth and has struggled to recover from the downturn in the digital ad market. Despite a 5% increase in revenue in the fourth quarter, Snap Inc’s stock has declined by nearly 30% since the release of its quarterly results.
Workforce reduction and industry challenges
In addition to its disappointing financial performance, Snap Inc recently announced a workforce reduction, marking its second job cut in two years. This reduction reflects the challenges faced by tech companies in an uncertain market.
Current SNAP token prices
Despite Snap Inc’s negative news, SNAP token prices have actually increased in the last 24 hours according to Coin Market Cap. As of now, the token is valued at $0.0001814, representing a nearly 2% increase from the previous day. However, its market cap has decreased from $24,614.73 to $58,732.68.
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