Why Snap Stock Was Sliding This Week

Core Viewpoint - The company's second quarter performance was disappointing, leading to a significant drop in its stock price and plans to raise additional capital [1][2]. Financial Performance - The company reported revenue of just under $1.35 billion, reflecting a year-over-year increase of 9% [3]. - Daily active users (DAUs) reached 469 million, with the same percentage increase as revenue [3]. - Average revenue per user (ARPU) increased slightly by $0.01 to $2.87 [3]. - The net loss deepened to almost $263 million ($0.16 per share), compared to a loss of nearly $249 million in the previous year [5]. Analyst Expectations - The financial performance was largely in line with analyst expectations, with revenue matching the consensus estimate of $1.35 billion and the net loss slightly higher than the expected $0.15 per share [5]. Future Guidance - Management provided guidance for the third quarter, anticipating DAUs to rise to around 476 million and revenue to be between slightly under $1.48 billion and just over $1.5 billion [6]. Capital Raising Efforts - The company announced plans to raise $550 million in new borrowings, an increase from the initial target of $500 million, through a series of senior notes with an annual interest rate of nearly 6.88%, maturing on March 15, 2034 [7].