This “Shrug Emoji” Announcement of Bad News Didn’t Sit Well With Investors

Snap stock and its ripple effect.

In this podcast, Motley Fool senior analyst Tim Beyers discusses: How the current environment has little patience for nuance.

The underrated health of Zoom’s business.

Motley Fool retirement expert Robert Brokamp talks with Motley Fool contributor Dan Caplinger about a couple of ways investors can fight inflation.

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Captions captions settings, opens captions settings dialog captions off, selected Audio TrackFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteTransparencyOpaqueBackgroundColorBlackTransparencyOpaqueWindowColorBlackTransparencyTransparentFont Size100%Text Edge StyleNoneFont FamilyProportional Sans-SerifReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Should you invest $1,000 in Snap Inc. right now? Before you consider Snap Inc., you’ll want to hear this.Our award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now… and Snap Inc. wasn’t one of them.The online investing service they’ve run for two decades, Motley Fool Stock Advisor , has beaten the stock market by 3X.* And right now, they think there are 10 stocks that are better buys. *Stock Advisor returns as of April 27, 2022 This video was recorded on May 24, 2022. Chris Hill: If you’re keeping a list of CEOs you could be doing a better job of communicating with investors. We’ve got one more name you can add. Motley Fool Money starts now. I’m Chris Hill, joined by Motley Fool Senior Analyst Tim Beyers. Thanks for being here. Tim Beyers: Thanks for having me, Chris, fully caffeinated and ready to go. Chris Hill: Likewise. We’re going to get the Zoom in just a little bit, we have to start with Snap because Snap is having ripple effects hitting shareholders way beyond just the Snap shareholders for those who missed its CEO, Evan Spiegel warned that the company is going to miss its own quarterly targets for profits and revenue. Shares of Snap down 40 percent today and the ripple effects I referred to its basically any company that relies on digital advertising of some form or another. Shares of Meta Platforms, Roku , Pinterest , Alphabet, Trade Desk, just to name a few, down in the wake of this market environment where nobody gets the benefit of the doubt and everyone is assuming the worst all the time. Tim Beyers: Yeah, when your stock is down 40 percent, you can no longer be called Snap, we have to call you snapped. You’ve been snapped now. It’s terrible, Chris. It’s really frustrating to be honest how this came to pass. Evan Spiegel got asked about basically the state of the business at the JP Morgan conference and said our guidance is going to come in down below the low-end of our guidance that we issued a month ago. It was probably the biggest shrug emoji of an announcement of bad news that I think I’ve seen in a while, it was really weird. It was almost like a Hollywood moment where we have to freeze the frame and say like, wait a minute, did that just happened and then, of course, to follow this up, Snap issued an 8-K and an 8-K filing. This is an SEC filing that is required when the company discloses something that could be material to an investor.In this case, it is material that Snap investors thought they were going to see a certain amount of growth. Now they’re not going to see that and so they put out this 8-K filing that essentially repeated what Spiegel said during the conference, and then there really wasn’t any more color commentary on this, Chris. Let’s talk about what we know. The two things we do know when Snap announced guidance on April 21st. Literally a month ago, 20-25 percent year-over-year growth. That’s what to expect in the coming quarter and zero to breakeven to $50 million of EBITDA. We know two things. It’s going to be less than 20 percent and Snap, if I have my numbers right here as never grown […]

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