Introduction
Snap is the company behind Snapchat. Snapchat is an app for photos, videos, and messages. On Wednesday, November 4, 2026, Snap shared its third-quarter results. Sales grew. But sales were still below what experts expected. Shares fell over 10% after the news.
What Happened
Revenue means all the money a company brings in from sales. Snap’s revenue was $1.72 billion. That was up 14% from a year earlier. Experts had expected $1.74 billion. So Snap missed its sales target by a small amount. Daily active users means people who use the app each day. Daily active users were 495 million. Experts had expected 499 million. That was also a small miss.
Snap’s stock fell over 10% in extended trading. Extended trading means trading after the normal market closes. For the fourth quarter, Snap expects revenue of $1.95 billion to $1.99 billion. The middle of that range was above the $1.95 billion experts expected. So the next forecast was not weak. The miss in this quarter still hurt the stock.
Key Figures
- Revenue: $1.72 billion, up 14% from a year earlier
- Revenue expected: $1.74 billion
- Daily active users: 495 million, versus 499 million expected
- Shares: down over 10% in extended trading
- Fourth-quarter revenue forecast: $1.95 billion to $1.99 billion
- Advertising revenue: up 10% from a year earlier
Why It Happened
Most of Snap’s money comes from ads. Ads are paid messages shown in the app. Advertising revenue rose 10%. That is good growth. But it was not quite enough. Investors had hoped for more. User growth was also a little slow. When fewer new people join, future ad sales may grow more slowly. Snap also said brand advertising was soft. Brand advertising means big companies showing their name, not selling one item at once.
Why It Matters
Small misses can cause big stock moves. That sounds odd. But it happens often. Experts set a target. If a company misses it, some investors sell. They worry the next quarter may also miss. Snap’s next forecast was actually decent. Still, the market focused on the miss first. This shows why earnings day is jumpy. One small number can move a stock a lot in one evening.
What Happens Next
Watch the fourth quarter. Snap expects $1.95 billion to $1.99 billion in revenue. Watch daily users too. If user growth picks up, ad sales may follow. Watch brand advertising as well. If big brands spend more, that will help. Snap will also need to show it can grow without spending too much.
Final Thoughts
Snap grew. It just did not grow quite as fast as hoped. That was enough for a sharp fall. For readers, the lesson is clear. Expectations matter. A company can grow and still see its stock fall. The target is part of the story.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
Sources: CNBC, Snap shares fall over 10% on third-quarter revenue miss; Reuters, Snap third-quarter results and fourth-quarter forecast, November 4, 2026. Related post: Qualcomm Shares Fall 7% After a Soft Forecast, Even as Sales Hit $10.44 Billion