Snap Inc. (SNAP) stock tanks after reporting decelerating growth in DAUs - Hagens Berman
SAN FRANCISCO - Hagens Berman urges Snap Inc. (NYSE: SNAP) investors who suffered losses in excess of $250,000 to submit your losses now.
Contact An Attorney Now: SNAP@hbsslaw.com, 844-916-0895
Snap Inc. (NYSE: SNAP) Investigation:
“We’re focused on investors’ losses and whether Snap may have misled investors about its ability to capture increased ad spending,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
On Feb. 6, 2024, one day after announcing it would reduce its job force by 10%, Snap reported disappointing Q4 and FY 2023 financial results and disappointing guidance for its March quarter, again unable to prove that it can be profitable on a GAAP basis. Quarterly revenues came in at about $1.36 billion, just a 5% year-over-year increase and missing analysts’ consensus. While the company said that its daily active user base grew 10% year-over-year to 414 million, that rate decelerated from prior quarters.
The financial press observed that Snap continued to struggle in the ad market, unlike its larger peers, which could show that advertisers may be giving up on Snapchat. One analyst reportedly observed “‘Snap has failed to show the market its ability to capitalize on resilient ad spending across different parts of the economy.’”
This news drove the price of Snap shares crashing as much as $6.21 lower, or down about 35%, during intraday trading on Feb. 7, 2024, wiping out over $8 billion in shareholder value. The news was also accompanied by several analysts’ price target cuts.
Whistleblowers: Persons with non-public information regarding Snap should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SNAP@hbsslaw.com.
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Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.