Snap Inc. (SNAP), a camera company operating in the United States and internationally, has faltered 17.06% in aftermarket trading session and as a result, is trading at $26.6 at the time of the writing. During Wednesday’s regular trading session, the stock closed declined by 4.72% and closed the day at $32.07. The plunge has come as a result of a sharp decline posted by FB stock in the wake of an abysmal outlook. SNAP is expected to announce its quarterly results today, i.e. 3rd of February, 2021, at 2:00 p.m. Pacific Time.
SNAP Response to Mini-Tender Offer
In November, SNAP announced the receipt of notice of an unsolicited “mini-tender” offer from TRC Capital. The notice was concerned with the purchase of up to 2,000,000 shares of Snap Class A common stock with a price of $50.25 per share in cash. The offer price from TRC capital was 4.43% less than the closing price per share of Snap’s Class A common stock on October 29, 2021, which was $52.58. The company said that if all of the shares would get acquired, TRC Capital ownership would represent 0.15% of the outstanding Class A common stock of Snap.
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Q3 2021 Results
In October, SNAP announced the results for the third quarter of fiscal 2021, which ended 30th September 2021. The company’s revenue was recorded at $1.06 billion, an increase of 57% when compared with the same quarter of 2020. The operating loss bore by Snap for the three months was $180.8 million, or a decline of 8% compared to the same three-month period of 2020. The net loss for the period was $71.9 million (or diluted Loss per share of $0.05), a 64% increase when compared with the same period of 2020.
Financial Guidance for Q4 2021
SNAP also reported the financial guidance for the fourth quarter of the fiscal year 2021. The company expected the revenue to lie in the range of $1.16 to $1.2 billion during the fourth quarter of the fiscal year 2021. Alongside that, the company estimated that the adjusted EBITDA would fall in the range of $135 million to $175 million during the fourth quarter of the fiscal year 2021.
Future Outlook for SNAP
Statistics reveal that during the last month, SNAP stock has declined by approximately 30%, owing to both market-related and company-specific factors. Looking ahead, analysts believe that the stock holds several negative signals, and hence, is expected to perform weakly in the next couple of weeks. Investors therefore should make a careful decision regarding their investments.
