Snap Inc. (SNAP) shares fell more than 20% after posting its first quarter earnings report, which shaved more than $5 billion off its market capitalization.

The company reported revenue that increased 285.8% to $149.65 million – missing consensus estimates by $8.33 million – and a net loss of $2.31 per share. While the app reached 166 million daily active users (DAUs), the modest addition was insufficient to reach analyst estimates calling for 168 million DAUs. Average revenue per user (ARPU) and hosting costs per DAU were also unfavorable versus the prior quarter – although up year-over-year.

From a technical standpoint, the stock broke down below its S2 support at $18.56 to fresh all-time lows. Thursday’s candlestick suggests a lot of indecision in the market with long shadows and a small real body, which means that the market is unsure about how to value the stock following the earnings announcement. This indecision means that traders could see a period of sideways price movements before a definitive new trend in either direction.

Technical indicators suggest that the stock may be approaching oversold levels with a relative strength index (RSI) of 34.94, although the stock has only been trading since early February, which means the indicator may have limited reliability. The moving average convergence-divergence, on the other hand, points to a renewed bearish downtrend as the stock resumes its downward trend following its initial public offering earlier this year.

Charts courtesy of StockCharts.com. Author holds no position in the stock(s) mentioned except through passively-managed index funds.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.