Snap and Super Micro Plunge Over 17% on Missed Earnings and Weak Guidance

Snap Inc. (SNAP) and Super Micro Computer Inc. (SMCI) both saw significant declines in premarket trading on Wednesday, August 6, 2025, following the release of disappointing second-quarter earnings reports. The sharp sell-offs, exceeding 17% for both stocks, reflected investor dissatisfaction with key financial metrics that fell short of expectations [3].

Snap reported global average revenue per user (ARPU) of $2.87, below the $2.90 that analysts had predicted. While the company exceeded user growth estimates—reaching 469 million daily active users—this positive figure was overshadowed by the ARPU shortfall. Snap also reported total revenue of $1.34 billion, slightly below the $1.35 billion consensus, despite a 9% year-over-year increase. CEO Evan Spiegel cited a recent advertising platform update as a major factor behind the ad revenue dip, which caused ad campaigns to clear at substantially reduced prices [3]. The incident, though resolved, highlighted Snap’s vulnerability in the competitive digital advertising landscape.

Super Micro Computer also struggled to meet expectations. The AI server manufacturer reported adjusted earnings per share of 41 cents, below the 44 cents analysts had forecast, and revenue of $5.76 billion, missing the $5.89 billion target. CEO Charles Liang attributed part of the earnings decline to the impact of U.S. tariffs on imported goods, noting that the company has taken steps to mitigate these effects. However, the results signaled a broader slowdown in AI server demand, with revenue growth of just 7.5% compared to the explosive growth seen in 2023 and early 2024 [3].

Investor concerns were further fueled by Super Micro’s weak forward guidance. The company projected adjusted earnings per share of 40 to 52 cents on revenue of $6 billion to $7 billion for the upcoming fiscal quarter, well below the analyst consensus of 59 cents and $6.6 billion, respectively. This outlook suggested a deceleration in the AI infrastructure market as the initial wave of demand matured [3].

The synchronized declines of both stocks highlighted the growing sensitivity of the market to earnings performance, particularly in the tech sector. Snap’s struggles with ad monetization and Super Micro’s challenges in maintaining AI growth painted a picture of broader uncertainties. Although both companies remain well above their year-to-date lows, the sharp sell-offs indicated that investors were prioritizing near-term financial performance over long-term growth potential [3].

Sources:

[1] "Snap Shares Decline as Ad Glitch Crimps Quarterly Sales" (https://finance.yahoo.com/news/snap-shares-decline-ad-glitch-085729846.html)

[2] "Snap shares tumble as investor concerns mount despite user..." (https://finance.yahoo.com/news/snap-shares-tumble-investor-concerns-204725665.html)

[3] "Why Did SNAP and SMCI Shares Crash in Premarket Trading Today?" (https://tokenist.com/why-did-snap-and-smci-shares-crash-in-premarket-trading-today/)

[4] "SMCI Earnings: Super Micro Computer Stock Crashes on..." (https://www.tipranks.com/news/smci-earnings-super-micro-computer-stock-crashes-on-weak-q4-results)

[5] "After-hours movers: AMD, Super Micro, SNAP, Match and..." (https://ng.investing.com/news/stock-market-news/afterhours-movers-amd-super-micro-snap-match-and-more-432SI-2044903)

[6] "Pre-Market Movers: ALAB Soars 17%, AMD -5%, Opendoor..." (https://news.moomoo.com/flash/20837047/pre-market-movers-alab-soars-17-amd-5-opendoor-18)

[7] "Snap earnings miss in Q2 as ad glitch hits revenue—stock..." (https://m.economictimes.com/news/international/us/snap-earnings-miss-in-q2-as-ad-glitch-hits-revenuestock-plunges-15-on-weakest-growth-in-a-year-shaking-investor-confidence/articleshow/123127644.cms)