Company Performance - Pinterest's second-quarter sales grew by 17% year-over-year, with net income reaching $38.76 million, up from $8.9 million in the same period last year [1] - The company recorded $251 million in adjusted EBITDA for the second quarter, exceeding StreetAccount's estimates of $233 million [3] - Earnings per share were reported at $0.33, slightly below the expected $0.35 [6] User Metrics - Pinterest reported 578 million global monthly active users in the second quarter, surpassing the projected 574.5 million [2] - The user base has seen significant growth, with Gen Z now accounting for over half of Pinterest's users [3] Future Outlook - For the third quarter, Pinterest expects sales to be between $1.033 billion and $1.053 billion, exceeding analyst estimates of $1.025 billion [2]

Q2 2025 Earnings Report © 2025 Pinterest. All rights reserved. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) ...

Core Viewpoint - A California jury ruled against Meta in a privacy-related lawsuit, finding that the company violated the California Invasion of Privacy Act by allegedly collecting sensitive data from the Flo period-tracking app [1][2]. Group 1: Lawsuit Background - The lawsuit is a class-action case that dates back to 2021, involving Flo Health and other companies, including Meta and Google-parent Alphabet [2]. - Flo Health had assured users that their sensitive reproductive health information would not be disclosed, yet personal data was shared with companies like Meta and Google through online ad-related tools [3]. Group 2: Legal Proceedings and Outcomes - Google and one analytics firm settled their claims before the jury trial, while Flo Health settled just before the trial concluded on August 1. Meta opted to go to court and subsequently lost the case [4]. - Meta is expected to appeal the jury's verdict [4]. Group 3: Statements and Reactions - Lead trial lawyers stated that the verdict emphasizes the importance of protecting digital health data and holding Big Tech accountable for profiting from users' intimate information [5]. - A Meta spokesperson expressed disagreement with the ruling, asserting that user privacy is important to the company and that it prohibits developers from sending sensitive information [6].

Core Insights - Reddit (RDDT) and Snap (SNAP) are competing for digital ad budgets, with Reddit focusing on community engagement and Snap on visual messaging and AR experiences [1][2] - Both platforms are investing in AI to enhance ad targeting and campaign performance [1][2] Digital Advertising Market - The global social media ad market is expected to grow from $228.18 billion in 2024 to $406.64 billion by 2029, at a CAGR of 12.25% [2] - Brands are increasingly seeking platforms with personalized reach and engaged audiences, benefiting both Reddit and Snap [2] Reddit's Position - Reddit has over 100,000 active subreddits, with Reddit Answers reaching 6 million weekly active users in Q2 2025, a 5x increase sequentially [4][11] - Ad revenues for Reddit grew 84% year over year to $465 million in Q2 2025, with a consensus estimate of $438.33 million for Q3 2025 [6][12] - Daily Active Uniques (DAUq) rose 21% year over year to 110.4 million in Q2 2025, with a consensus estimate of 113.17 million for Q3 2025 [7] Snap's Position - Snap's global user base reached 469 million DAUs in Q2 2025, an 8.6% year-over-year increase [8] - The Snapchat+ subscriber base approached 16 million, supported by new offerings like Lens+ [9][11] - Commerce-driven ad volume grew 39% year over year in Q2 2025, with newer ad formats like Sponsored Snaps showing stronger conversion outcomes [10][12] Financial Performance and Valuation - RDDT shares have increased by 30.2% year-to-date, while SNAP shares have declined by 27.7% [13] - RDDT trades at 17.35X forward Price/Sales, significantly higher than SNAP's 2.09X [11][16] - The Zacks Consensus Estimate for Reddit's Q3 2025 earnings is 34 cents per share, a 112.5% increase year over year, while SNAP's estimate is 4 cents per share, a 50% decline year over year [18] Investment Outlook - Reddit is building momentum through community engagement and improving ad tools, but its monetization model is still evolving [19] - Snap offers a more mature platform with a broader global footprint and deeper youth traction, making it a more attractive investment option [20]

Core Insights - DatChat Inc. has selected Otter PR as its public relations agency to enhance its communications efforts [1][2] - The partnership aims to promote DatChat's innovative approach to social networking and digital privacy [2] Company Overview - DatChat Inc. (Nasdaq: DATS) specializes in secure messaging and social media, focusing on user privacy both on personal devices and after information is shared [4] - The DatChat Messenger allows users to control message visibility duration, prevent screenshots, and manage encrypted photos, providing a secure messaging experience [4] - The Myseum platform serves as a secure digital content storage and sharing ecosystem for families and groups [4] PR Agency Overview - Otter PR is recognized as a leading PR agency, having received accolades from Clutch, G2, and UpCity for its media placement success [1][5] - The agency aims to transform brands into household names and has been featured in major publications like Yahoo Finance and Forbes [5]

Meta Platforms (META 1.05%) rose over 11% on July 31 thanks to the incredible results that it posted during the second quarter. Meta also delivered some shocking news that helped propel the stock higher, as its expected growth is far greater than anyone predicted. But after a large jump in a short time frame, is the stock still worth buying? Q2's growth far exceeded management's expectations Meta Platforms is better known for the social media platforms that it owns: Facebook, Instagram, Threads, WhatsApp, a ...

Core Insights - Snap (SNAP) reported a second-quarter 2025 loss of a penny per share, missing the Zacks Consensus Estimate for earnings of a penny, while revenues rose 8.7% year over year to $1.35 billion, beating estimates by 0.66% [2][9] Revenue Breakdown - Revenues from North America, which account for 61% of total revenues, increased 6.9% year over year to $820.6 million [3] - Revenues from Europe, making up 19.7% of revenues, surged 15.4% to $265.34 million [3] - Revenues from the Rest of the World (ROW) reached $258.99 million, up 8.2% year over year [3] - The average revenue per user (ARPU) rose 0.3% year over year to $2.87, with North America and Europe seeing ARPU increases of 8.6% and 12.3%, respectively, while ROW's ARPU declined by 5.9% [3] User Engagement - Snap's global community reached 469 million daily active users (DAU) in Q2, marking an 8.6% year-over-year increase, with a quarter-over-quarter addition of 9 million DAU [4] - North America's DAU was 98 million, down 2% year over year, while Europe's DAU was 100 million, up 3.1% year over year; ROW's DAU was 271 million, up 15.3% year over year [5] Subscription Growth - Snapchat+ approached 16 million subscribers in Q2, driving a 64% year-over-year surge in other revenue, reaching an annualized run rate of nearly $700 million [6] Advertising Performance - Snap's advertising platform showed significant improvements, with purchase volume for commerce advertisers increasing 39% year over year and total purchase-related advertising revenues growing over 25% [7][9] - The Sponsored Snaps format generated up to 22% higher conversion rates when integrated into broader advertising campaigns [7] Operating Expenses - Adjusted cost of revenues rose 11% year over year to $650.1 million, while adjusted operating expenses increased 2.2% to $631.1 million [8] - Sales and marketing expenses decreased by 2% to $202.2 million, and general and administrative expenses fell 10.5% to $183.8 million; however, research and development expenses rose 18.9% to $245.1 million [8] Financial Metrics - Adjusted EBITDA was $41.3 million, down 24.9% from the previous year, reflecting revenue growth deceleration and increased investment spending [10] - As of June 30, 2025, cash and cash equivalents, and marketable securities totaled $2.9 billion, down from $3.2 billion as of March 31, 2025 [11] Future Guidance - Snap expects third-quarter DAU to reach 476 million and projects revenues between $1.48 billion and $1.51 billion [12] - The company maintained its full-year guidance for infrastructure costs per DAU at 82-87 cents per quarter and anticipates operating in the top half of this range for Q3 [12] - EBITDA is projected to be between $110 million and $135 million in Q3 [12]

Snap reported a wider loss and missed adjusted earnings estimates as it dealt with an ad platform glitch. https://t.co/y5F9EVyvFl ...

Core Insights - Snap's advertising demand is being hindered by changing consumer behavior and tariff-related pressures [1] - The company reported revenues of $1.34 billion, a 9% increase year over year, but advertising growth slowed to just 4% [2] - CEO Evan Spiegel acknowledged multiple headwinds, including global economic factors, affecting performance [2] Financial Performance - Snap's core ad business, which constitutes the majority of its revenue, faced reduced demand from cost-sensitive advertisers [3] - Auction prices were negatively impacted by a recent change to the ad platform, which has since been rolled back [3] - Ad revenue growth has returned to 3% to 4% as advertisers adjust their strategies [3] Competitive Landscape - Snap is facing stiff competition from platforms like TikTok and Meta's Facebook and Instagram, with advertisers shifting their spending [4] - Meta and Reddit reported more positive earnings, contrasting Snap's performance [4] - The digital ad environment has become more challenging for Snap, with less tolerance for mistakes [5] Strategic Initiatives - In response to advertising pressures, Snap is investing in automation and artificial intelligence (AI) to enhance ad performance and reduce acquisition costs [5] - The company highlighted its AI-driven Smart Campaign tools aimed at optimizing bids and targeting [5] - Small and midsize businesses were the largest contributors to ad revenue growth in the quarter [6] User Engagement Trends - Time spent on Snap's Spotlight short-form video feature increased by 23% year over year, now accounting for nearly half of all content viewed on the platform [6] - Users are shifting from direct posting to content-based interactions, sharing Spotlight content to initiate conversations [7] - There has been a 30% increase in time spent on video chatting among users [7]

Core Viewpoint - Snap's stock (NYSE: SNAP) saw a nearly 20% decline following its Q2 earnings report, primarily due to misses on revenue, Average Revenue Per User (ARPU), and EBITDA, leading to the conclusion that the stock is not a favorable buying opportunity at this time [2][10]. Financial Performance - Snap's current valuation is approximately $8, which is considered unappealing due to concerns over its high valuation relative to its operational performance [3]. - The company has recorded revenues of $5.6 billion over the last 12 months, with a quarterly revenue increase of 9% to $1.34 billion compared to $1.24 billion a year prior [7]. - Snap's average growth rate in revenue over the past three years is 9.4%, outperforming the S&P 500's 5.2% growth [7]. Profitability Metrics - Snap's operating income over the past four quarters was -$654 million, resulting in an operating margin of -11.6%, significantly lower than the S&P 500's 18.4% [13]. - The company's net income for the last four quarters was -$546 million, indicating a net income margin of -9.7%, compared to 12.2% for the S&P 500 [13]. - Snap's profit margins are notably lower than most firms in the Trefis coverage universe [6]. Financial Stability - Snap's balance sheet is described as robust, with total assets of $7.4 billion, including $2.9 billion in cash and cash equivalents, leading to a strong cash-to-assets ratio of 39% [8][13]. - The company's debt reached $4.2 billion, resulting in a moderate debt-to-equity ratio of 32%, compared to 23.6% for the S&P 500 [13]. Market Resilience - Snap's stock has underperformed compared to the S&P 500 during recent downturns, raising concerns about its resilience in potential future economic downturns [9][10]. - The stock has experienced a significant decline of 90.7% from its peak of $83.11 in September 2021 to $7.76 in October 2022, while the S&P 500 saw a peak-to-valley decline of 25.4% during the same period [14].