Snap Stock Plunges After Q4 Earnings Report

Social media giant Snap (SNAP) faces a challenging quarter as it releases its Q4 earnings report.

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Snap reported a fourth-quarter adjusted profit exceeding expectations, but revenue fell short of Wall Street targets.

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In response to the news, Snap stock plummeted over 30% in extended trading, reaching $12.

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Snap owns and operates the popular Snapchat social media app, contributing to its market presence.

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Snap's revenue guidance came in light, attributing it to fierce competition from Meta Platforms, TikTok, and YouTube short-form video services by Alphabet.

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Despite challenges, Snap added 8 million daily active users in Q4, surpassing estimates. The total daily active users reached 414 million by the end of 2023, a 10% increase from the previous year.

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Snap reported adjusted earnings per share of 8 cents, slightly above analysts' predictions of 6 cents per share.

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The market responds to Snap's mixed results, highlighting the intense competition in the social media landscape.

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As Snap navigates challenges, industry watchers speculate on the company's strategic moves in response to the dynamic social media landscape.

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