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With Snap's first earnings report coming, Facebook and Twitter provide a cautionary tale (SNAP, FB, TWTR)

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Snap Snapchat IPO NYSE Spectacles

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 $100 million in the last week alone, and as of Tuesday sat at $946 million, according to financial analytics firm S3 Partners. 

Wall Street analysts are expecting Snap to post an adjusted loss of $0.16 per share on revenue of $158.55 million. Snap's initial public offering priced at $17 a share, and the stock hit an all-time high of $27.09 just two days later.

Ahead of the results, Snap is trading down 1.3% near $23. 

Back in the second quarter of 2012, Facebook announced an adjusted loss of $0.08 a share versus the Wall Street estimate of a $0.12 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 $1.43 a share, missing the Wall Street consensus of a $0.02 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.

 

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