Shares of social-media companies
traded mixed Friday after daily active users at
rose slightly more than expected.
Meta (ticker: FB) gained 0.8% to $189.55 early Friday. Pinterest (PINS) was down 1.1% to $20 but had jumped more than 2% in after-hours trading Thursday following Snap’s results.
Daily active users in the first quarter at Snap (SNAP) jumped 18% from a year earlier to 332 million. Analysts were expecting 331 million.
Snap shares were down 1.4% to $29.01 in premarket trading Friday. The stock has moved in and out of positive territory after the company reported revenue below forecasts. Snap reported revenue in the quarter of $1.06 billion, below estimates of $1.07 billion.
During the company’s conference call, CEO Evan Spiegel said the first quarter “proved more challenging than we had expected, and our team was able to make significant progress against our goals despite the increased volatility in the operating environment.”
The company said it expects revenue growth between 20% and 25% for the second quarter, below analysts’ forecasts of 28% growth.
Snap also noted that “ongoing platform-related headwinds” presented challenges during the quarter. The company has taken a hit from changes to
(AAPL) operating system for mobile devices.
“In addition, these ongoing platform-related headwinds, supply-chain shortages and labor disruptions, rising inflation and geopolitical unrest are presenting challenges for a wider array of industry verticals than in the prior quarter,” said Jeremi Ann Gorman, chief business officer, on the conference call.
Analysts at RBC Capital Markets said Snap’s first-quarter report reflected “worsening macro headwinds but with some positive green shoots on a forward-looking basis.”
RBC also said Snap “sets up as an acceleration narrative where Apple signal issues seem mostly at bay.”
RBC rates the stock at Sector Perform with a price target of $35, down from $42.
Meta Platforms and Pinterest are both expected to report earnings after the closing bell on April 27.
Write to Joe Woelfel at [email protected]