Snap shares plunge following second-quarter earnings miss

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MARKET MISS: Snap shares plunge after disappointing Q2 results

Going forward, Snap Chief Financial Officer Derek Anderson said the company would "substantially slow" its rate of hiring, "effectively pause" its headcount growth and cut back on its non-personnel-related operating expense growth. The company also said it would continue to invest heavily in its platform, products and direct-response advertising business to "build a path to free cash flow break-even or better.

Snap Inc. shares plunged 38% during Friday's trading session after the social media giant reported disappointing second-quarter earnings results. Oppenheimer analyst Jason Helfstein told clients in a note on Thursday that Snap is "now facing too many to underwrite stock in the medium-term" before even factoring in consumer spending. The firm has downgraded Snap stock from "outperform" to "perform" and removed its 12-month price target of $22 per share.

 

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