SNAP is trading at $5.74 (-6%) in after-hours trading following its Q1 2026 earnings release, as concerns over high infrastructure costs weighed on investor sentiment despite beating revenue and earnings estimates.
- Revenue rose 12% to $1.53B and Adjusted EBITDA surged 115% to $233M, while daily active users (DAUs) grew 5% to 483M.
- The company announced a 16% workforce reduction to save $500M, but highlighted rising infrastructure expenses that could impact the path to profitability.
- The sell-off occurs despite a broader market rally (Nasdaq +1.44%), suggesting a company-specific reaction to the guidance.