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Snap stock dips following Guggenheim’s analysis on usage trends

Published 02/04/2025, 12:42
© Reuters.
SNAP
-0.11%
PINS
-0.05%

Snap Inc (NYSE:SNAP).’s shares fell by 1% in premarket trade Wednesday as investors digested a report from Guggenheim that provided an analysis of the company’s audience reach and app download data through March.

The report indicated a modest deceleration in global audience reach growth for Snap’s Ads Manager in the first quarter, while the decline in North America showed slight moderation. Additionally, global download trends from Apptopia suggested a modest slowdown in the first quarter.

Guggenheim’s analysis highlighted that Snap Inc. had guided to first-quarter Daily Active Users (DAUs) of 459 million, which implies a sequential net addition of 6 million users—the lowest level since the first quarter of 2019. This also represents a 50 basis points annualized growth deceleration, which aligns with the data trends observed.

The report further mentioned that the data does not indicate a usage uptick from any potential disruption in TikTok’s availability during the first quarter of 2025.

Moreover, the report took into account the potential impact of the new Simple Snapchat feature, which is currently in beta. Snap’s management does not anticipate a meaningful disruption from the rollout of this feature, which is expected in the first quarter at the earliest, although details on progress are limited.

The analysis by Guggenheim applied the same weightings of Ads Manager and Apptopia data that were used in their March Data Review Note for Pinterest (NYSE:PINS).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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