SNAP token creator, SNAP Inc. disappointed the markets after posting their fourth-quarter results. The Snapchat parent had failed to provide guidance that would create a hopeful sentiment among its investors. Ever since the company posted its fourth-quarter results, the shares of the firm have fallen over 25%, creating worries about its future.
Snap Inc shares fall after Q4 results
In an interview with Yahoo Finance, Kamran Ansari, the Headline venture partner expressed his disappointment with the firm. He said that Snap “has been flat the last year or so.” This indicated that the stock has underperformed for the past couple of years, raising bets that investors might be concerned about the stock’s future.
Ansari added, “If you look at their (SNAP) 2022 revenue versus 2023, essentially identical, and they’re still losing quite a bit of money.” The same sentiment has been reflected in the share price of the company. The stock is down nearly 30% ever since the quarterly results of the company were reported.
Snap Inc. posts disappointing quarterly results
According to CNBC reports, Snap Inc. revealed revenue that lagged behind analysts’ projections and released a forecast that fell slightly short of Wall Street’s expectations. The report further highlighted that Snap has had six consecutive quarters of single-digit growth. The firm has also seen sales declines as a result of its struggles to recover from the downturn in the digital ad market. Revenue increased by almost 5% annually in the fourth quarter, from $1.3 billion to $1.36 billion.
Snap’s disappointing results come shortly after it announced a workforce reduction. The firm had said that it would be letting go of about 10% of its workforce. The job reduction is the second in the last two years as tech companies overall have grappled with uncertainties and workforce reductions.
SNAP token prices today
Despite the negative news around the token’s parent, SNAP prices have ascended in the last 24 hours, according to Coin Market Cap. At the time of writing, the token stands at $0.0001814, being up nearly 2% as compared to the last day. The current market cap of the token stands at $58,732.68, being down from a previous volume of $24,614.73.
Read the full article here