by: Jayson Derrick, Benzinga Staff Writer
Investors who listened to Snap Inc SNAP 20.97%'s post-earnings conference call would be forgiven if they thought they were listening to a "Saturday Night Live" parody, CNBC's Jim Cramer said Wednesday.
Snap's call had no signs of being a "real conference call," Cramer said. For starters, management said it's having "challenging conversations with advertisers." Cramer jokingly imagined Snap asking advertisers, "Hey, will you sign up with us," only for advertisers to reply with a firm "no."
Meanwhile, Snap's management team highlighted success it has seen with beer ads. This may be a problem as "some people think half of the audience isn't allowed to have beer because they are under-age," Cramer said.
"Beer ads?" Cramer exclaimed. "The average person who's on this is 14 years old."
Why It's Important
Meanwhile, Snap's report shows it's the complete opposite Twitter Inc TWTR 1.85%, according to Cramer. Twitter was able to revamp its social media app, which managed to "bring more people in." When Snap re-designed its Snapchat app, it resulted in "leaving people out."
Snap management more than just "talked down" its outlook for the second quarter as it expects growth to decelerate. But beyond the quarter, Cramer noted Snap's expenses continue to "rack up," most notably a five-year contract with Google Cloud.
Snap's stock traded around $11.24 at time of publication, down 20.4 percent on the day.
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