Shares of social network Snapchat (NYSE: SNAP)
fell 17.6% in the morning session after the company reported mixed first-quarter 2025 results: its revenue narrowly outperformed Wall Street's estimates, and its free cash flow missed. The key concern was the lack of near-term guidance, with the company citing macro uncertainty. On a more positive note, Snap blew past analysts' EPS and EBITDA expectations. Overall, we think this was a decent quarter, with some key metrics above Wall Street's expectations. The market seemed to focus on the negatives.
Shares of Pinterest edged lower by 5.9% Wednesday morning. Snap's earnings report triggered broader concerns about digital advertising trends affecting social media companies.
Let's have a look at what is happening on the US markets before the opening bell on Wednesday. Below you can find the top gainers and losers in today's pre-market session.
Snapchat's AI chatbot My AI—once met with user backlash—has seen U.S. daily active users grow 55% year-over-year, as Snap doubles down on integrating AI with augmented reality.
CEO Evan Spiegel noted progress with direct-response advertising solutions, continued momentum in driving performance for small and medium sized businesses and growth of Snapchat+ subscription business.
Social network Snapchat (NYSE: SNAP) announced better-than-expected revenue in Q1 CY2025, with sales up 14.1% year on year to $1.36 billion. Its GAAP loss of $0.08 per share was 40.3% above analysts’ consensus estimates.
