Snap (SNAP) reports second-quarter earnings after the market close Tuesday, as the social networking company faces a challenging time.
The company replaced its chief financial officer in May with a 20-year veteran from Amazon.com (AMZN), Tim Stone. It also launched a software developer’s kit in June and added new features to its Snapchat platform. In addition, there have been numerous media reports that suggest Snap may be working on a visual search product with Amazon.
Snap is the owner and operator of the Snapchat mobile platform used for photo and video sharing. It competes primarily with the Instagram platform of Facebook (FB).
The company has been under constant assault from Facebook, which has copied most of Snapchat’s best features. Facebook has applied them it its Instagram photo- and video-sharing platform. Snap has also struggled with the impact of a product redesign in February that was widely criticized.
Analysts expect Snap to post second-quarter revenue of $251 million, up 38% from the year-ago quarter. It also would be the third quarter in a row of revenue deceleration.
The Street also sees an adjusted loss of 17 cents per share. That compares with a 16-cent loss in the year-ago quarter.
Snap Stock Crash
Snap stock crashed to a record low on May 2 after it reported first-quarter earnings The company missed views on revenue, user growth and several other key metrics, as analysts slashed price targets.
The company reported having 191 million daily active users, an increase of 4 million from the fourth quarter but below estimates of 194 million.
RBC Capital Markets analyst Mark Mahaney has an outperform rating on Snap stock with a price target of 16.
Snap shares ended Monday’s regular session at 13.05, up 2.5%, on the stock market today.
The initial public offering was held in March 2017, pricing shares at 17. Snap stock is down 11% this year.