Snap financial report: Snap's revenue in Q2 2022 was US$1.11 billion, a year-on-year increase of 13%

Snap, the parent company of the "disappearing" communication app Snapchat, closed down 39.08% on Friday at $9.96. The company released its second-quarter earnings report yesterday, which was lower than expected, and plans to slow down recruitment, which led to a sharp cut in its target price by several investment banks. The earnings report showed that Snap's adjusted loss per share in the second quarter was 2 cents, while the market expected a loss of 1 cent; revenue increased by 13% year-on-year to $1.11 billion, while the market expected $1.14 billion; the global daily active users (DAU) reached 347 million, while the market expected 344.2 million.

Snap said that "the second quarter of 2022 proved to be more challenging than we expected" and that it now plans to "significantly slow the pace of hiring and the growth of operating expenses."

Some analysts called the company's second-quarter results "very disappointing" and cut their price targets and ratings.

Benchmark analyst Mark Zgutowicz lowered the company's target price from $20 to $15, but maintained a "buy" rating. Evercore ISI analyst Mark Mahaney downgraded its rating from "outperform" to "market perform" and lowered its target price from $26 to $14. Goldman Sachs analyst Eric Sheridan downgraded Snap's rating from "buy" to "neutral" and lowered its target price from $25 to $12. Credit Suisse analyst Stephen Ju lowered Snap's target price from $45 to $35, but maintained an "overweight" rating.