12/14/2023 0 Comments Snap stock nowCombined with the tough economic climate, Snap's revenue sank 7% year over year in Q1 to $989 million. The company says some of the new features it's rolling out were disruptive to revenue generation in the short term but should result in much better results in the long run. Snap made a series of internal changes to work around some of these limitations, including developing new features for advertisers to boost conversions. This crippled social media platforms' ability to sell highly targeted ads to businesses, which resulted in a slowdown in revenue. Since 2021, Snap (and competing social media companies) struggled with privacy changes made by Apple, which limited the ability of apps on Apple products to track users across the internet without their clear permission. Snap races to improve the advertising experience But there were some key positives in its results, so here's why investors might want to take this opportunity to buy the stock on the dip. Snap stock sank 19% after the company reported its first-quarter earnings, taking its overall decline from its all-time high to 89%. Businesses cut their marketing budgets to conserve resources and because they fear a lower return from their marketing because consumer spending is more constrained. Investors are keeping an eye on how companies are navigating this difficult economic environment, as inflation remains elevated and interest rates continue to rise.Ĭompanies like Snapchat parent Snap (NYSE: SNAP), which rely on advertising revenue, have struggled. The technology sector is in the middle of an important earnings season for the quarter ended March 31. ![]() Leave a Reply Click here to cancel reply.
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