Snap Shares Tank as Disappointing Outlook Overshadows Sales Beat
- Subscription product on track for $500 million in annual sales
- Social media company names Ajit Mohan chief business officer
Snap said new advertising formats have attracted more small- and medium-sized marketers to its app.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Snap Inc. shares slid by the most in six months after the Snapchat owner issued a disappointing earnings outlook, taking away from stronger-than-expected revenue gains in the last quarter.
Snap expects adjusted earnings before interest, taxes, depreciation and amortization to total $40 million to $75 million in the first quarter, falling well below analysts’ expectations. The company’s revenue projections were meanwhile roughly in line with estimates.