(Boursier.com) — Snap the parent company of Snapchat, dropped 25% before the stock market on Wall Street the day after its lackluster quarterly accounts. Meta loses 4% in its wake, Alphabet 2% and pinterest 7%! The sector weighs very heavily on the Nasdaq, expected to decline by nearly 1% in pre-session. Same Twitter fell 9%, also against the backdrop of a potential investigation by the American authorities into certain Elon Musk deals and their implications in terms of national security.
Snap, for its part, has therefore erased its entire rally from the confinement period. Evan Spiegel’s group posted its lowest historical growth for the quarter, with the decline in advertising spending, which still affects its results. Third-quarter revenue rose just 6% to $1.13 billion, versus market consensus of $1.14 billion. The social media company spent the quarter downsizing and refocusing its business, announcing in August that it was cutting 20% of its workforce and restricting projects that do not contribute to user or revenue growth, or to efforts to business augmented reality.
For the quarter, Snap reported a net loss of $360 million, or 22 cents per share, including $155 million in restructuring costs. Yet the board has authorized a 12-month, $500 million share buyback plan, a bold move for a money-losing group, or, optimists will say, a signal of confidence in the economy. ‘coming.
The Snapchat app, popular with young people for sending disappearing messages and sprucing up videos and photos with special effects and filters, reported a total of 363 million daily active users in the quarter, up from 57 million compared to the previous year. This exceeded the consensus estimate of 359 million. Still, Snap’s average revenue per user corrected 11% to $3.11, missing analysts’ average projection of $3.19 (Bloomberg data). Users in a key market, the United States, spent 5% less time watching content than in the same quarter last year.
The firm, which does not provide financial forecasts, prioritizes efforts that can increase revenue. In the third quarter, Snap expanded its fledgling subscription service, Snapchat+ to 1.5 million users, paying for early access to exclusive or pre-release features. The group has also invested in improving the advertising measurement tools on its platform.