Snap shares fell more than 10% after parent company Snapchat's third-quarter revenue and daily active users missed analyst expectations. Revenue was $1.72 billion versus $1.73 billion expected per LSEG, and global daily active users were 495 million versus 499 million expected per StreetAccount. Average revenue per user (ARPU) was $3.48, in line with expectations, while revenue rose 14% year over year and net income was $56 million, compared with a $104 million net loss a year earlier. Snap guided fourth-quarter revenue to $1.95 billion to $1.99 billion, with a midpoint above Wall Street's $1.95 billion estimate. The company also said that starting in the first quarter of 2027 it will make global monthly active users its “primary audience metric,” arguing a longer-term horizon better reflects its product and safety decisions.
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