Starbucks Stock SBUX and SNAP In Freefall After Hours on Lower/No Guidance

Quick overview

Following the release of quarterly results that sparked concerns about future growth, the stock prices of two well-known companies, Snap Inc. and Starbucks, fell precipitously during extended trading.

Snap Inc.’s shares fell sharply in after-hours trading, after announcing better-than-expected profitability in the first quarter of 2025. The stock rose 3% during regular market hours, ending at $9.10. However, the company’s positive momentum swiftly evaporated after it reported a first-quarter adjusted loss of $0.08 per share on revenue of $1.363 billion. While these results exceeded analysts’ expectations, investor sentiment soured almost immediately, driving the stock down nearly 15% to $7.80.

Snap Surpasses Expectations but Spooks Investors with Cautious Tone

Beneath the headline numbers, Snap’s performance was robust in several areas. Daily active users rose 9% year-over-year to 460 million, and the company crossed a significant milestone of 900 million monthly active users—a key step toward its long-term goal of 1 billion. Moreover, the number of active advertisers on the platform surged by 60%, signaling deeper engagement from the business side.

Still, the post-earnings optimism quickly faded due to Snap’s decision not to provide formal guidance for the second quarter. Citing macroeconomic uncertainty and unpredictable ad demand, the company warned that revenue momentum may not be consistent, even as topline growth continued. In a note to shareholders, Snap emphasized a need to align spending with realized revenue and called attention to a “challenging” start to Q2, adding further fuel to investor concerns.

SBUX Stock Chart Daily – The Downtrend Will Resume Tomorrow

Meanwhile, Starbucks also found itself in a steep post-market slide after releasing results for its fiscal second quarter, which ended March 30, 2025. The coffee chain reported adjusted earnings of $0.41 per share on revenue of $8.76 billion—both slightly below Wall Street expectations, which had projected $0.49 in EPS and $8.83 billion in revenue.

Starbucks Falls Sharply After Missing Q2 Estimates

The modest miss on the numbers was enough to trigger a sharp reaction in the stock. Shares of Starbucks closed the regular session at $84.85 but tumbled more than 7% in after-hours trading to $78.81 and continued trending downward. While the company did not issue a major downward revision to its outlook, the weaker-than-expected earnings and cautious consumer sentiment weighed heavily.

Starbucks’ GAAP results also included items not reflected in the non-GAAP adjustments, which may have added to the lack of clarity around its core profitability for the quarter.

Outlook for SBX and SNAP

Both Snap and Starbucks are facing investor backlash not just for missing targets, but for injecting uncertainty into their future narratives. Snap’s user growth remains strong, and Starbucks retains global brand momentum—but in an environment increasingly defined by caution, visibility and consistent execution are now paramount. Without clear guidance, even strong engagement metrics may not be enough to shield stocks from sharp corrections.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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