Stocks The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) x
Today's stock market
| Index | Percentage Change | Point Change |
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| Dow | ||
| S&P 500 |
Data source: Yahoo! Finance.
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Snap's first quarter beat Wall Street's expectations on both the top and bottom lines and the stock initially jumped in after-hours trading yesterday but dropped in the first hour of trading today and closed down xx%. Revenue for the parent company of Snapchat increased 39% to $320 million and the net loss for the company was $0.10 per share, compared with a loss of $0.17 in the period a year earlier. Analysts were expecting the company to lose $0.12 on revenue of $306 million.
Engagement is improving, with Snap adding 4 million daily active users in the quarter to a total of 190 million after that metric was flat last . Average revenue per user increased 39% to $1.68 and gross margin was 39%, an improvement of 2.1 percentage points year-over-year. Operating expenses decreased 4 % from the period a year ago and operating cash flow improved by $166 million to an outflow of $66 million.
So why did the stock fall today? Guidance for Q2 was not spectacular, with a revenue estimate that met expectations and a statement hinting that Q2 user growth may be slower than that in Q1. But given that the stock opened above yesterday's close, it's likely there was nothing in the conference call that raised specific concerns, but some investors may have concluded that now is the time to take some profit after a 118% return since the start of the year.
APC
Occidental Petroleum is launching a hostile bid to acquire Anadarko Petroleum in a cash-and-stock deal worth $75 per share, outbidding Chevron's earlier offer, worth $62.03 at current prices and already approved by the Anadarko board. Anadarko rose xx% to $xx on the news, while Occidental fell xx% and Chevron dropped xx%.
Occidental is upping the proportion of cash in its offer compared with Chevron's, bidding $38 in cash and 0.6094 shares of its stock for every share of Anadarko. Chevron's offer is for $16.25 in cash and 0.3869 Chevron shares.
Anadarko released a statement acknowledging the offer and saying its board will review the offer. A combination with either suitor would result in a dominant producer in the Permian Basin, but share price movements today suggest that investors assume that Chevron will win out after raising its bid.
