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May 2, 2018

Oh Snap! Cramer Trashes Snap Earnings Call To 'SNL' Skit

Investors who listened to Snap Inc (NYSE: SNAP)'s post-earnings conference call would be forgiven if they thought they were listening to a "Saturday Night Live" parody, CNBC's Jim Cramer said Wednesday.

What Happened

Snap's call had no signs of being a "real conference call," Cramer said. For starters, management said it's having "challenging conversations with advertisers." Cramer jokingly imagined Snap asking advertisers, "Hey, will you sign up with us," only for advertisers to reply with a firm "no."

Meanwhile, Snap's management team highlighted success it has seen with beer ads. This may be a problem as "some people think half of the audience isn't allowed to have beer because they are under-age," Cramer said.

"Beer ads?" Cramer exclaimed. "The average person who's on this is 14 years old."

Why It's Important

Meanwhile, Snap's report shows it's the complete opposite Twitter Inc (NYSE: TWTR), according to Cramer. Twitter was able to revamp its social media app, which managed to "bring more people in." When Snap re-designed its Snapchat app, it resulted in "leaving people out."

What's Next

Snap management more than just "talked down" its outlook for the second quarter as it expects growth to decelerate. But beyond the quarter, Cramer noted Snap's expenses continue to "rack up," most notably a five-year contract with Google Cloud.

Snap's stock traded hovering $11.00, down about 22% on the day.

This story was originally published by Benzinga, Video added by EconMatters.

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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