SNAP token creator, Snap Inc posted disappointing quarterly results, fanning concerns about the firm’s future. Snapchat parent’s result failed to meet Wall Street expectations after it posted a 5% increase in revenue for the fourth quarter. The shares of the company slumped over 30% reflecting investor dispiriting.
Snap Inc quarterly results miss expectations
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.
Throughout extended trade, the stock fell 30%.
Jefferies still positive about Snap’s future growth
Despite a dented investor sentiment and disheartening results, a Jefferies analyst has stayed positive on the future growth of Snap. In an interview with Yahoo Finance, James Heaney, vice president of equity research says, “We still like the stock and think it can recover on the acceleration that we’re expecting into Q1”.
The expectation also resonates with the company’s forecast for the future. At present, in the first quarter, Snap’s growth is predicted to pick up speed, though not nearly as quickly as analysts had anticipated.
According to the same CNBC report, Snap predicted sales of $1.095 billion to $1.135 billion for the quarter, which would be an increase of roughly 11% to 15% over the same period last year. At $1.115 billion, the range’s midpoint fell just short of analysts’ average forecast of $1.117 billion, or a 13% expansion.
Are crypto firms headed for a downturn?
Despite looming uncertainties and disappointing public company results, institutional forecasts for this year’s expansion of the Bitcoin ecosystem are mainly optimistic. CoinGape previously reported that analysts at present continue to forecast a strong year for the crypto domain. This includes Bitwise’s forecast that in 2024, the price of Bitcoin will surpass $80,000. For the first half of 2024, at least, institutional investment in Bitcoin will continue to be the main focus, according to Coinbase.
Even other sectors like Ethereum and Solana are predicted to head for a bull run later in the year. If the expectations were to come true, publicly listed crypto companies could regain momentum in 2024 based on heightened demand and better customer interaction.
SNAP token price 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 $0.0004328, being up nearly 162% as compared to the last day. The current market cap of the token stands at $58,732.68 with stagnant trading volumes.
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