Snap Plunges as Company Pulls Guidance Amid ‘Uncertainty’
19 minutes ago
Shares of Snap (SNAP) tumbled Wednesday, a day after the social media company said it wouldn’t provide a current-quarter outlook and plans to cut costs because of “uncertainty” about the future.
The Snapchat operator wrote in a letter to investors that because it’s not clear “how macro economic conditions may evolve in the months ahead, and how this may impact advertising demand more broadly, we do not intend to share formal financial guidance for Q2.”
The company said that even though revenue continued to increase, “we have experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth.”
As a result, Snap is reducing its expectation for full-year adjusted operating expenses to $2.65 billion to $2.70 billion from its previous estimate of $2.70 billion to $2.75 billion. It also sees its 2025 stock compensation at $1.13 billion to $1.16 billion, down from the previous forecast of $1.15 billion to $1.20 billion.
The warning offset better-than-anticipated first-quarter results. The company reported a net loss of $0.08 per share on revenue that rose 14% year-over-year to $1.36 billion. Analysts surveyed by Visible Alpha were looking for a loss of $0.14 per share and revenue of $1.35 billion.
CEO Evan Spiegel noted Snap surpassed 900 million monthly active users (MAU) for the first time, and that the revenue jump was driven by “the progress we have made with our direct-response advertising solutions, continued momentum in driving performance for small and medium sized businesses, and the growth of our Snapchat+ subscription business.”
TradingView
Snap shares were down 17% recently, pushing the stock’s year-to-date decline to 30%.
Norwegian Cruise Stock Sinks as Results Miss Estimates
56 minutes ago
Norwegian Cruise Line Holdings (NCLH) shares plunged Wednesday, after the company posted earnings that missed analysts’ estimates and said it had seen some “softening” in bookings amid economic uncertainty.
The Miami-based cruise operator posted first-quarter adjusted earnings per share (EPS) of $0.07 on revenue that fell 3% year-over-year to $2.13 billion. Analysts polled by Visible Alpha had projected $0.09 and $2.15 billion, respectively.
“The Company has seen softening in its 12-month forward booked position but continues to remain within the optimal range, even amid ongoing macroeconomic volatility,” Norwegian Cruise said.
The cruise line maintained its outlook for 2025, anticipating adjusted EPS of $2.05, increasing about 13% year-over-year.
“While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives,” CEO Harry Sommer said.
Norwegian Cruise shares, which had lost about a third of their value since the start of the year through Tuesday’s close, were down 10% in early trading.
Supermicro Levels to Watch as Stock Sinks After Results
1 hr 43 min ago
Super Micro Computer (SMCI) shares plummeted in premarket trading after the server maker posted preliminary results for its fiscal third quarter that came in well below its prior guidance.
The company tied the downward revision to delayed consumer product decisions that pushed sales into the current quarter, amplifying broader concerns of a slowdown in spending amid uncertainty over the Trump administration’s sweeping tariffs.
Coming into today’s session, Supermicro shares had gained 18% so far this year. The stock has, however, seen significant price swings as investors assess recent challenges relating to the company’s accounting and corporate governance practices amid a clouded demand outlook for AI infrastructure, such as servers used in data centers.
Supermicro shares have oscillated within an ascending channel since October last year, tagging the pattern’s upper and lower trendlines on several occasion over that time. More recently, the stock has rallied from the channel’s lower trendline, though the price has remained below the respected 50- and 200-day moving averages to indicate a longer-term downtrend.
Investors should monitor support levels on Supermicro’s chart around $28 and $17, while also watching resistance levels near $50 and $63.
The stock was down 20% at around $29 ahead of the opening bell.
Read the full technical analysis piece here.
S&P 500, Nasdaq Futures Lower After 6 Days of Gains
2 hr 31 min ago
Futures tied to the Dow Jones Industrial Average were up 0.1%.
TradingView
S&P 500 futures were down 0.4%.
TradingView
Nasdaq 100 futures slipped 0.6%.
TradingView
