Shares of social media company Snap (SNAP) have plunged more than 30% in price since the company’s weak third-quarter earnings report. However, can the company rebound by leveraging its broad portfolio of products and services? Let’s discuss.Camera company Snap Inc . (NYSE:SNAP), which is based in Venice, Calif., celebrated its 10th anniversary this quarter. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. The company also provides a suite of content tools for partners to build, edit, and publish snaps and attachments based on editorial content; and Spectacles, which are sunglasses that capture video from a human perspective.
SNAP recently reported its third-quarter earnings results. Its daily active users increased 23% year-over-year to 306 million during the quarter, and its revenue increased 57% year-over-year to $1.07 billion. However, the stock has lost more than 30% in price since reporting earnings on October 22, 2021, to close the last trading session at $52.02, because the company failed to meet its revenue guidance.
Also, the stock has declined 35% over the past month and is currently trading 37.6% below its 52-week high of $83.30, which it hit on September 24, 2021. SNAP has warned that global supply chain interruptions and labor shortages could reduce its short-term appetite to generate additional customer demand through advertising. So, the company’s near-term prospects look uncertain.