With Snap's first earnings report coming, Facebook and Twitter provide a cautionary tale

Snap’s first quarterly results as a publicly traded company are due out after Wednesday’s closing bell.
Some traders seem to be expecting a repeat of Facebook and Twitter’s first report. Both of those social media companies missed Wall Street expectations by a wide margin.
With the report approaching, short interest in Snap has climbed by more than $US100 million in the last week alone, and as of Tuesday sat at $US946 million, according to financial analytics firm S3 Partners.

Wall Street analysts are expecting Snap to post an adjusted loss of $US0.16 per share on revenue of $US158.55 million. Snap’s initial public offering priced at $US17 a share, and the stock hit an all-time high of $US27.09 just two days later.

Ahead of the results, Snap is trading down 1.3% near $US23.

Back in the second quarter of 2012, Facebook announced an adjusted loss of $US0.08 a share versus the Wall Street estimate of a $US0.12 gain. Its shares tumbled nearly 12% the day following the earnings release.

Things were much worse for Twitter. The company announced an adjusted loss of $US1.43 a share, missing the Wall Street consensus of a $US0.02 by a huge margin, in its first quarterly report as a publicly traded company. The stock crashed more than 24% in the trading day after the report.

Get the latest Snap stock price here.

NOW WATCH: The Marine Corps is testing a machine gun-wielding robot controlled with just a tablet and a joystick

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.