Today’s Research Reports on Stocks to Watch: Twitter and Snap
NEW YORK, NY / ACCESSWIRE / August 9, 2018 / Snap may have reported good numbers in its second quarter financial report but the number for daily users didn’t impress traders, sending shares into the red. It was the first time the company reported a decline in daily Snapchat users. Users had fallen to 188 million in the second quarter from 191 million in the prior quarter. Analysts on average expected the company to see a growth of nearly 2 million users in the second quarter from the first quarter. Shares of Twitter also closed in the red after making headlines this week for defending to keep conspiracy theorist Alex Jones on its platform.
RDI Initiates Coverage on:
Twitter, Inc.
https://rdinvesting.com/news/?ticker=TWTR
Snap Inc.
https://rdinvesting.com/news/?ticker=SNAP
Twitter, Inc. shares closed down 2.54% on about 22.5 million shares traded on Wednesday. The social networking site has been making headlines this week for defending its decision to keep the Alex Jones conspiracy factory on its platform. It was on Tuesday that CEO Jack Dorsey took to the platform explaining why the company is keeping the conspiracy theorist and hatemonger and his Infowars empire. Dorsey wrote, "Our policies and enforcement options evolve continuously to address emerging behaviors online and we sometimes come across instances where someone is reported for an incident that took place prior to that behavior being prohibited. In those instances, we will generally require the individual to delete the Tweet that violates the new rules but we won’t generally take other enforcement action against them (e.g. suspension). This is reflective of the fact that the Twitter Rules are a living document. We continue to expand and update both them and our enforcement options to respond to the changing contours of online conversation. This is how we make Twitter better for everyone.”
Access RDI’s Twitter, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=TWTR
Snap Inc. shares closed down 6.78% on Wednesday on trading volume nearly three times higher than usual at 61.2 million shares. The parent company of the SnapChat app initially saw gains in pre-market trading after reporting stronger-than-expected second quarter revenues. The company reported revenue of $262 million for the three months ending in June, which beat analysts' expectation of $247.2 million. Adjusted loss per share of 14 cents was also better than the 17 cents expected by the street. Unfortunately, it was the company's first decline in users following the controversial redesign of its signature Snapchat app that had traders discouraged. Daily Snapchat users fell 1.6% to 188 million over the second quarter. CEO Evan Spiegel said on the earnings call, "This was primarily driven by a slightly lower frequency of use among our user base due to the disruption caused by our redesign. It has been approximately six months since we broadly rolled out the redesign of our application and we have been working hard to iterate and improve Snapchat based on the feedback from our community."
Access RDI’s Snap Inc. Research Report at:
https://rdinvesting.com/news/?ticker=SNAP
Our Actionable Research on Twitter, Inc. (NYSE: TWTR) and Snap Inc. (NYSE: SNAP) can be downloaded free of charge at Research Driven Investing.
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