Snap stock is slipping today after announcing layoffs
Snap Inc (NYSE:SNAP) stock is moving lower today, down 3.1% to trade at $16.51, after the social media giant became the latest tech company to announce layoffs, cutting 10% of its workforce. This comes ahead of the Snap’s latest earnings report, due out after the close tomorrow, Feb. 6.
Snap stock doesn’t have the brightest post-earnings history, having closed its last six next-day sessions lower. Over the past two years, SNAP has averaged a large post-earnings swing of 21.8%, regardless of direction, which is still lower than the 31.5% move the options pits are pricing in this time around for Wednesday’s trading.
Though call volume is outweighing put volume on an overall basis today, with 91,000 calls exchanged in comparison to 62,000 puts, puts are still running at double what’s typically seen at this point. The weekly 2/9 22.50-strike call is the most popular, where new positions are being opened.
Over the last 12 months, the stock is up roughly 50% and is not far off its Dec. 18 52-week high of $17.89. A post-earnings short squeeze could catch bearish bettors off guard, considering short interest represents 7.5% of the stock’s available float. It would take shorts nearly four days to cover their bets, at SNAP’s average pace of trading.
