Snap Inc Saw Bad Earnings Results and Chipotle Mexican Grill Reported Quarterly Results
Snap Incorporated, or more commonly known as Snapchat, is a tech company that works in the camera business, although they are most known for their social media app. They have a market cap of $118.757 billion, and they are in Los Angeles, California.
After the market closed on Thursday, Snap reported their Q3 earnings for this year. They did beat on earnings per share with a profit of 15 cents per share, which doubled analyst expectations. However, today’s earnings were mainly focused on revenue, which Snap missed to the surprise of many. Revenue was $1.07 billion, which slightly missed, and it was due to Apple’s privacy settings, which affected their advertising a lot more than expected. Due to this and the supply chain issues, they also reduced their guidance for the next quarter, creating a terrible quarter for the company. Snap shares were down 21.58% to $58.90.
Chipotle Mexican Grill
Chipotle is a restaurant company that operates Chipotle Mexican Grills all around the country. You’ve likely eaten from Chipotle before, and their online app has also been very strong, which is a big contributor to their market cap of $51.802 billion.
On Thursday, Chipotle announced their highly awaited third quarter earnings. Earnings rose to $6.32 per share, and revenue also jumped to $1.95 billion. Analysts were impressed that Chipotle maintained growth even with the labor shortages that are littering the restaurant industry. Their labor costs rose by 24%, but it wasn’t enough to affect them majorly. Even with an impressive report, Chipotle stock didn’t move much as the company fell to $1,821.00, down 1.24% after hours.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.