Why is Snap stock sliding today?

Snap stock slid 9.8% in after-hours trading after the Snapchat parent posted mixed third-quarter results that disappointed investors on the metrics they care about most: revenue and user growth. Revenue came in at $1.72 billion, just short of the $1.73 billion Wall Street consensus, while daily active users reached 495 million — falling below the 499 million analysts had anticipated.

On the earnings side, the picture was more encouraging: Snap reported GAAP earnings per share of $0.03, beating the consensus estimate of $0.01, and Adjusted EBITDA of $383 million significantly exceeded the $337 million analysts had modeled. CEO Evan Spiegel stated that "advertising revenue growth remains below our ambitions," a candid admission that weighed on sentiment. Adding to investor unease, Snap announced it would discontinue reporting daily active users starting in 2027, shifting to monthly active users only — a change that some market participants interpreted as a move to obscure slowing engagement trends.

The after-hours selloff stood in stark contrast to a broadly positive session for U.S. equities. The S&P 500, Dow Jones, and Nasdaq all advanced during regular trading hours, buoyed by the Democrats’ sweep of both chambers of Congress in the midterm elections and a sharp drop in oil prices. Snap itself had rallied during the regular session before the earnings release, making the after-hours reversal all the more pronounced.

Ultimately, the combination of a revenue miss, a user growth shortfall, and the decision to retire a key engagement metric proved enough to overwhelm the positives — including a return to GAAP profitability and a Q4 revenue outlook that was roughly in line with expectations — sending shares sharply lower against an otherwise constructive market backdrop.