OMG Snapchat DOWN 22% after hours! | Nvidia UP $18 per share! | Summary and Q&A

TL;DR

Snapchat's stock plummets by 24% after hours, while Nvidia sees a significant increase of $18 per share.

Key Insights

• 🪡 Snapchat's IPO performance, compared to Facebook's early stock price, indicates that Snapchat would need to decrease significantly to have a similar performance.
• ✋ Value investors typically avoid IPOs due to the high prices and management's focus on obtaining top dollar for the company.
• 🙂 Snapchat's revenue growth is impressive, but it fell slightly short of expectations, and the company is currently losing more money.
• 💪 Snapchat's balance sheet is strong, with over $3.2 billion in cash and no long-term debt.
• 👤 Daily active users are a crucial metric for social media companies, and Snapchat's growth in this area is promising.
• 👤 Despite having a smaller user base than Facebook, Snapchat's valuation should be considered in comparison.
• 👤 Snapchat's average revenue per user and hosting costs per user are increasing, indicating the need for continued revenue growth to offset expenses.

Transcript

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Questions & Answers

Q: Why did Snapchat's stock plummet after hours?

Snapchat's stock saw a significant drop due to disappointing revenue results, despite still showing remarkable revenue growth.

Q: What was the growth in daily active users for Snapchat?

Daily active users for Snapchat increased by 36% year-over-year, demonstrating strong user engagement and growth.

Q: What contributed to Nvidia's success?

Nvidia's impressive earnings were driven by their data center GPU business and prospects in the field of artificial intelligence.

Q: How did Nvidia's stock perform in after-hours trading?

Nvidia had a substantial increase of $18 per share in after-hours trading, showing the market's positive response to their earnings report.

Summary & Key Takeaways

• Snapchat's stock drops by 24% after disappointing revenue results, although they still show significant revenue growth.

• Daily active users for Snapchat increased by 36% year-over-year, indicating strong user engagement.

• Nvidia reports impressive earnings, with a 48% increase in revenue and 126% increase in EPS, driven by their data center GPU business and prospects in artificial intelligence.