Snap falls 14.0% after quarterly results and weaker user metrics

What happened

Snap (SNAP) fell 14.0% on November 5, 2026, after its third-quarter results and guidance disappointed investors. The company reported third-quarter revenue of $1.72 billion, up 14% year over year, and delivered earnings per share of $0.03 against $0.00 expected, according to its November 4 earnings release. That report, together with weaker-than-expected user metrics, triggered a roughly 10% decline in after-hours and pre-market trading, CNBC and Benzinga reported, and the move carried into the session as investors reassessed near-term growth prospects.

How big was the move

The stock closed at $5.09, a session the data classifies as 3.5 times a typical daily move for this stock. It opened 10.6% below the previous close and fell 10.4% over the last five sessions. Trading volume ran 1.9 times its 20-day average as investors sold into the earnings headline. The S&P 500 fell 4.4% on the day and fell 4.7% over five sessions; the Communication Services sector median fell 2.6% on the day, leaving the stock 11.4 percentage points worse than the sector median. The company’s market value was $9.03 billion on the session date.

The technical picture

Technically, the stock traded below key moving averages: the stock was 15.9% below its 20-day moving average, 11.5% below its 50-day moving average and 5.7% below its 200-day moving average. The 50-day average remained above the 200-day average, a sign of an established uptrend. The Relative Strength Index (14 days) was 37, inside a neutral range between 30 and 70. The share was 44.2% below its 52-week high and had fallen 12.4% over one month, 4.5% over three months and 31.9% over one year, leaving it 40.5 percentage points behind the S&P 500 over the same period. Volatility was 63% annualized over 60 days, lower than 55% of its own readings over five years.

Fundamentals and valuation

Over the four quarters through September 30, 2026, Snap reported revenue of $6.57 billion, which grew 13.8% from a year earlier and compared with growth of 12.6% one quarter earlier. Diluted earnings per share for that period were $-0.10. Gross margin improved to 59.1% from a year earlier 54.3%, while operating margin narrowed to 1.8% from 10.5% a year earlier. Free-cash-flow margin stood at 11.8% and return on invested capital was 5.2%. The balance sheet showed net debt of 16.9 times EBITDA, and share count over one year increased by 0.2%. The stock offered a free-cash-flow yield of 8.6%.

Earnings and analyst expectations

Snap’s latest report came on November 4, 2026, when the company posted quarterly revenue of $1.72 billion and earnings per share of $0.03 versus $0.00 expected, a result the firm described in its release. The company provided fourth-quarter revenue guidance of $1.95 billion to $1.99 billion. The stock had beaten estimates in 15 consecutive quarters, with an average surprise over the last four reports of 100.0% above estimates, and the typical two-day reaction after recent reports was a rise of 1.7%. That pattern broke this session as investors focused on guidance and user metrics.

Seventy-three analysts covered the stock. The consensus price target was $7.37, which was 44.8% above the closing price, and the consensus rating was Hold. Thirty-eight percent of analysts assigned the stock a Buy or Strong Buy rating. PromtFinance factor scores painted a mixed picture: Growth was strong at 83 and Revisions were strong at 88, while Quality was very weak at 25 and Stability was very weak at 11. Value scored 42 and Momentum 32, both on the weak side. Those scores, together with the company’s operating margin compression and heavy net debt, framed the market’s reassessment.

What to watch

• February 3, 2027: Next scheduled earnings report.
• Fourth-quarter revenue guidance of $1.95 billion to $1.99 billion from the November 4, 2026, release.
• Snap’s disclosure that it had surpassed 30 million paid Snapchat+ subscribers, an increase of 5 million since February.
• Balance sheet leverage: net debt of 16.9 times EBITDA.