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ETFs in Focus as Snap Beats on Both Lines in Q3 Earnings Release
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Snapchat owner Snap Inc. (SNAP - Free Report) came up with its third-quarter earnings Tuesday afternoon, beating Zacks Consensus Estimates on both revenue and earnings per share. Quarterly earnings of $0.02 per share surpassed the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.08 per share a year ago.
Snap, which belongs to the Zacks Internet - Software industry, posted revenues of $1.19 billion for the quarter, beating the Zacks Consensus Estimate by 7.72%. This compares to year-ago revenues of $1.13 billion. The company highlighted a return to sales growth during the quarter, as revenue rose 5% year over year.
Snap shares initially jumped as much as 20% in after-hours trading as the company beat on the top and bottom lines. But the shares eventually fell and remained relatively flat on news that some advertisers had stopped spending due to the onset of the war in the Middle East, according to a CNBC article.
As part of Snap’s “internal forecast,” the company said it expects sales in its fourth quarter to be in the range of $1.32 billion to $1.38 billion, compared to $1.33 billion expected by analysts. Snap said it is not providing official fourth-quarter guidance “due to the unpredictable nature of war,” going against the pattern from the previous quarter when it provided official guidance, as quoted on CNBC.
Snapchat+, the company’s subscription service that costs $3.99 a month, reached over five million subscribers in its recent quarter, up from four million during the prior quarter. Snap said last summer that it would lay off 20% of its workforce consisting of more than 6,000 employees. The cost cutting procedure continued as recently as this September when Snap said it shut down its augmented reality enterprise business.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that contain Snap in their portfolios.
Roundhill MEME ETF – Snap takes about 4.72% of the fund
The Solactive Roundhill Meme Stock Index consists of 25 equal-weighted U.S. listed equity securities that exhibit a combination of elevated social media activity and high short interest. The MEME gained 2.9% on Oct 24.
ProShares On-Demand ETF (OND - Free Report) – Snap takes about 4.57% of the fund
The underlying FactSet On-Demand Index consists of companies which provide on-demand platforms and services to consumers. The fund advanced about 1% on Oct 24.
Global X Metaverse ETF – Snap takes about 4.55% of the fund
The underlying Global X Metaverse Index provides exposure to companies that are positioned to benefit from the development and commercialization of the metaverse. The fund advanced about 0.8% on Oct 24.
Global X Social Media ETF (SOCL - Free Report) – Snap takes about 4.33% of the fund
The underlying Solactive Social Media Index is designed to reflect the performance of companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications. The fund has advanced 3.1% on Oct 24.
ProShares Metaverse ETF (VERS - Free Report) – Snap takes about 4.32% of the fund
The underlying Solactive Metaverse Theme Index consists of companies that provide innovative technologies to offer products and services around the Metaverse. The fund is up 1.8% on Oct 24.
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ETFs in Focus as Snap Beats on Both Lines in Q3 Earnings Release
Snapchat owner Snap Inc. (SNAP - Free Report) came up with its third-quarter earnings Tuesday afternoon, beating Zacks Consensus Estimates on both revenue and earnings per share. Quarterly earnings of $0.02 per share surpassed the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.08 per share a year ago.
Snap, which belongs to the Zacks Internet - Software industry, posted revenues of $1.19 billion for the quarter, beating the Zacks Consensus Estimate by 7.72%. This compares to year-ago revenues of $1.13 billion. The company highlighted a return to sales growth during the quarter, as revenue rose 5% year over year.
Snap shares initially jumped as much as 20% in after-hours trading as the company beat on the top and bottom lines. But the shares eventually fell and remained relatively flat on news that some advertisers had stopped spending due to the onset of the war in the Middle East, according to a CNBC article.
As part of Snap’s “internal forecast,” the company said it expects sales in its fourth quarter to be in the range of $1.32 billion to $1.38 billion, compared to $1.33 billion expected by analysts. Snap said it is not providing official fourth-quarter guidance “due to the unpredictable nature of war,” going against the pattern from the previous quarter when it provided official guidance, as quoted on CNBC.
Snapchat+, the company’s subscription service that costs $3.99 a month, reached over five million subscribers in its recent quarter, up from four million during the prior quarter. Snap said last summer that it would lay off 20% of its workforce consisting of more than 6,000 employees. The cost cutting procedure continued as recently as this September when Snap said it shut down its augmented reality enterprise business.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that contain Snap in their portfolios.
Roundhill MEME ETF – Snap takes about 4.72% of the fund
The Solactive Roundhill Meme Stock Index consists of 25 equal-weighted U.S. listed equity securities that exhibit a combination of elevated social media activity and high short interest. The MEME gained 2.9% on Oct 24.
ProShares On-Demand ETF (OND - Free Report) – Snap takes about 4.57% of the fund
The underlying FactSet On-Demand Index consists of companies which provide on-demand platforms and services to consumers. The fund advanced about 1% on Oct 24.
Global X Metaverse ETF – Snap takes about 4.55% of the fund
The underlying Global X Metaverse Index provides exposure to companies that are positioned to benefit from the development and commercialization of the metaverse. The fund advanced about 0.8% on Oct 24.
Global X Social Media ETF (SOCL - Free Report) – Snap takes about 4.33% of the fund
The underlying Solactive Social Media Index is designed to reflect the performance of companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications. The fund has advanced 3.1% on Oct 24.
ProShares Metaverse ETF (VERS - Free Report) – Snap takes about 4.32% of the fund
The underlying Solactive Metaverse Theme Index consists of companies that provide innovative technologies to offer products and services around the Metaverse. The fund is up 1.8% on Oct 24.