Snap Struggles Despite Earnings Beat—Analysts See Higher Costs, Mixed Growth Prospects
Snap Inc. Financial Results: Snap reported fourth-quarter earnings of 16 cents per share and revenue of $1.55 billion, both exceeding analyst expectations; however, shares fell by 6.85% following the results as analysts revised price forecasts, with mixed ratings from BofA Securities, JP Morgan, and Wells Fargo.
Analyst Outlook: Analysts expressed cautious optimism about Snap's ad growth and engagement strategies, while also highlighting pressures on brand spending and increased operational costs, leading to varied revenue and EBITDA estimates for 2025 and 2026.
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Wall Street's ETF Expansion: Wall Street is increasingly pursuing the launch of leveraged exchange-traded funds (ETFs), testing legal boundaries with a surge in recent filings.
Recent Filings: At least three ETF issuers—Volatility Shares, ProShares, and T-Rex—have requested approval from the Securities and Exchange Commission for new leveraged funds.
Investment Opportunities: If approved, these leveraged ETFs would allow investors to amplify daily price movements in major indices like the Dow Jones Industrial Average, as well as in stocks such as Nvidia and CoreWeave, and cryptocurrencies like bitcoin and XRP.
Potential Leverage: The proposed funds could offer leverage of up to 5x, significantly increasing the risk and potential reward for investors.
Legal Challenges for Alphabet Inc.: The Department of Justice is pushing for a breakup of Google's Chrome browser following an antitrust trial defeat, which could lead to a significant drop in Alphabet's stock and impact major tech ETFs heavily invested in the company.
Impact on Tech ETFs: A potential divestiture of Chrome could disrupt the performance and rankings of several ETFs, including Invesco QQQ Trust, Trenchless Fund ETF, and Vanguard Mega Cap Growth ETF, due to their substantial exposure to Alphabet, leading to broader market implications.
Lyft's Strong Performance: Lyft shares surged over 28% after announcing a share buyback program and reporting a 13% year-over-year increase in gross bookings, marking its 16th consecutive quarter of growth. The company also achieved a net income of $2.57 million, a significant recovery from a loss in the same quarter last year.
Uber's Mixed Results: In contrast, Uber's shares fell 2.5% following mixed Q1 results, despite surpassing earnings expectations but missing revenue projections. The company reported a net income of $1.78 billion and is focusing on expanding its autonomous vehicle technology, which it views as a major growth opportunity.

Lyft's Acquisition: Lyft, Inc. has acquired the European taxi app Freenow from BMW Group and Mercedes-Benz Mobility for €175 million ($197 million), marking a significant expansion into the European market and nearly doubling its addressable market.
Financial Impact: The acquisition is expected to increase annualized Gross Bookings by around €1 billion and enhance Lyft's revenue sources, with shares rising 2.11% following the announcement.
Market Insights: The latest episode of Trader Talk features Kenny Polcari and Rob Haugen discussing market fundamentals, active ETF strategies, and the challenges of global investing, emphasizing the importance of supply and demand in short-term price movements and cautioning about risks in emerging markets like China.
Culinary Segment: Alongside market analysis, the episode includes a recipe for Kenny’s Classic Bolognese, detailing ingredients and steps for preparation, showcasing a blend of culinary and financial insights.

Snap Inc. Financial Results: Snap reported fourth-quarter earnings of 16 cents per share and revenue of $1.55 billion, both exceeding analyst expectations; however, shares fell by 6.85% following the results as analysts revised price forecasts, with mixed ratings from BofA Securities, JP Morgan, and Wells Fargo.
Analyst Outlook: Analysts expressed cautious optimism about Snap's ad growth and engagement strategies, while also highlighting pressures on brand spending and increased operational costs, leading to varied revenue and EBITDA estimates for 2025 and 2026.








