Shares of Snap Inc. (NYSE: SNAP) fell around 7% in the after-hours trading session after the tech firm said the net loss grew nearly 30% from last year. Snap stock price is now moving towards the nearby support at $21. 

Snap presented its second-quarter earnings after the trading hours on Tuesday. The owner of the popular Snapchat app said it recorded revenue of $454 million, higher than $439.1 million expected from the market. 

A widely tracked indicator for social network companies – Global daily active users (DAUs) – grew 17% to 238 million, slightly lower than 238.48 million expected.

Earnings per share came in at $0.09, in line with the market consensus. Still, Snapt’s loss widened 28% to $326 million from $255 million last year. 

Snap blamed the bigger-than-expected loss in the second quarter on long-term investments. 

Snap share price is trading around 7% lower in premarket trading hours after initially sliding as much as 13%. The expansion of the second-quarter loss didn’t go too well with Snap investors, who pushed the stock price lower despite the surging revenue and DAUs.

Shares of Snap are now heading towards $21, where the diagonal support is located. This trend line connects two previous swing highs and it will likely provide strong support for the buyers. On the upside, the 161.8% Fibonacci extension remains the short-term target for the bulls. 

Snap share price tumbled 7% on Wednesday in premarket trading after the social media giant reported that its net loss grew 28% from last year. Shares are now heading lower towards the low $20s where important support is located.  

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