It’s been a tough ride for long-term Snap (NYSE: SNAP) investors.
Once touted as a close rival to Meta Platforms’ Instagram, the relatively small social media company remains unprofitable and is down by more than 30% year to date
Investors who are betting on a turnaround may want to cut their losses and review other investment opportunities. Growth is slow and profits are nonexistent Snap’s revenue trajectory does not reflect what investors have come to expect from unprofitable, high-stakes companies. The social media company only has an annualized 8.8% revenue growth rate over the past three years.
That’s much lower than Meta Platforms’ 19.9% compound annual growth rate (CAGR) over the same stretch. It’s impossible to even compare the two tech companies anymore. A few years ago, investors would look at Snap’s earnings to gauge how Meta Platforms would perform, and vice versa.