Snap shares fall over 10% following third-quarter earnings miss
Snap shares dropped by more than 10% after the company missed Wall Street expectations for third-quarter revenue and daily active users.
Snap shares declined by over 10% on Wednesday following a third-quarter earnings report that failed to meet market expectations. The company recorded $1.72 billion in revenue, falling short of the $1.73 billion projected by analysts.
User engagement metrics also disappointed, with Snap reporting 495 million global daily active users against an expected 499 million. However, the company’s bottom line showed improvement, reaching a net income of $56 million, reversing the $104 million net loss recorded in the same period last year.
Looking ahead, Snap announced a shift in its reporting strategy. Starting in the first quarter of 2027, the company plans to use global monthly active users as its primary audience metric. Management stated this change is intended to prioritize long-term user value and sustainable platform growth over short-term daily engagement targets.