Snap stock plunges on earnings, analyst says it's still a buy
02/07/2024 22:39
Shares of Snapchat parent Snap (SNAP) plunged Wednesday after disappointing fourth-quarter results fell short of elevated hopes, but Jefferies Vice President James Heaney remains bullish. While the "quarter was definitely a lot worse than what people were expecting," Heaney tells Yahoo Finance Live he "still likes the stock" and sees recovery potential. Heaney notes Snap's revenue miss and slowed user expansion "justified" the slide, given the stock "nearly doubled" last quarter. With expectations for 10% revenue growth, Snap's 5% year-over-year result shocked investors. However, Heaney believes Snap's ad investments and forthcoming app changes can reignite growth. By tracking "advertiser traction" and boosting engagement through tab consolidation, Heaney says Snap will get "more attractive to users." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
Shares of Snapchat parent Snap (SNAP) plunged Wednesday after disappointing fourth-quarter results fell short of elevated hopes, but Jefferies Vice President James Heaney remains bullish. While the "quarter was definitely a lot worse than what people were expecting," Heaney tells Yahoo Finance Live he "still likes the stock" and sees recovery potential.
Heaney notes Snap's revenue miss and slowed user expansion "justified" the slide, given the stock "nearly doubled" last quarter. With expectations for 10% revenue growth, Snap's 5% year-over-year result shocked investors.
However, Heaney believes Snap's ad investments and forthcoming app changes can reignite growth. By tracking "advertiser traction" and boosting engagement through tab consolidation, Heaney says Snap will get "more attractive to users."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith