Snap shares tank 23 percent after reporting $2.2 billion net losses

Traders gather at the post where Snap Inc. is traded on the floor of the NYSE

On average, analysts were expecting first-quarter revenue of about $169 million, but Snap reported revenue of just $150 million.

Shares in Snapchats parent company Snap Inc. have plummeted in value by nearly a quarter – to the tune of $6 billion. A large part of the $2.2 billion hit that Snapchat took last quarter was expected due to the IPO, which involved awarding $2 billion in stock-based compensation, $750 million of which went to the company's CEO Evan Spiegel. On average, equities analysts anticipate that Snap will post ($0.54) earnings per share for the current fiscal year. These shares have attained a daily stock value of $22.87-23.32 and a 52-week trading range of $18.9-29.44.

Snap shares plunged on Wednesday after the owner of Snapchat reported slowing user growth and revenue in its first earnings report as a public company, missing some Wall Street estimates as it competes with copycat messaging apps. The company's daily active users (DAUs), increased 36.1% to 166 million in the first quarter from the same period previous year, but was lower than the increase of 47.7% in the fourth quarter.

Facebook also announced that users for Instagram stories have reached the 200 million mark. Meanwhile, Facebook itself boasts more than 1.9 billion monthly users.

Snap's 36% daily active user growth was particularly disappointing when put into context with how fast the key metric is decelerating. Most young people using the app were found to believe that they would not be using it once they turned 35, which apparently is the age when people become adults.

"It's just early days for us", he said.

- How is Snap monitoring the number of ads shown to users to ensure they aren't frustrated or turned away from the app entirely?

And it has faced growing competition from Facebook, which has been introducing services similar to that of Snapchat on the leading social network and on Facebook-owned Instagram. However, Snap's first quarter revenue fell by 11 percent when compared to the fourth quarter of 2016 when it generated $166 million.

An afternoon recap of the day's most important business news, delivered weekdays.

"We still have a lot of work to do but we are excited by the amount of progress we have made in such a short time", Spiegel said.

It's the first major financial event for the 6-year-old firm since listing on the New York Stock Exchange in March.

William Blair reissued their outperform rating on shares of Snap Inc (NYSE:SNAP) in a report released on Thursday morning.

Related News:

  • Trump insists no evidence of collusion with Russia

    Trump insists no evidence of collusion with Russia

    Reince Priebus, the White House chief of staff, was asked directly about the 18-day delay on NBC's "Meet the Press" that Sunday. Yates interviewed Flynn, of course. "They likely had proof of this information, and that created a compromise situation".

    Buffett 'blew it' by not buying stock in Amazon and Google

    But he also said it would be a " terrible mistake " if capital allocation were not the "main talent" of his successor. Buffett said USA stocks looked "dirt cheap" for anyone who believed interest rates will stay low for a long time.

    Cincinnati officials release video of boy knocked out in bathroom

    For almost 5 minutes after that, " many students step over, point, mock, nudge, kick, etc.", the 8-year-old boy, Karaguleff wrote. Taye remained in the bathroom unconscious for several minutes until he was found by an assistant principal and school nurse.
  • Thompson, McLeod lead Jamaican charge in Shanghai

    Thompson, McLeod lead Jamaican charge in Shanghai

    Sam Kendricks of the United States won the event by clearing 5.88 metres and Renaud Lavillenie of France was second. But I did what I had to do and I was pleased with the win, he said.
    Chelsea has one hand on Premier League trophy after latest win

    Chelsea has one hand on Premier League trophy after latest win

    Stamford Bridge chiefs are now confident Conte will snub interest from his homeland to agree an extension. For sure, when you play against City and win the way we did, the confidence improved.
    Russian government releases photos of Oval Office meeting

    Russian government releases photos of Oval Office meeting

    Trump told reporters that the two had a "very very good meeting" and talked about the crisis in Syria. Trump plans to meet with Lavrov on Wednesday, according to his schedule.
  • Arizona's Chris Iannetta leaves game after taking pitch to face

    Arizona's Chris Iannetta leaves game after taking pitch to face

    He gave up seven hits and eight runs, six earned, in three innings in a loss to the Dodgers in his first start on the trip Monday. Pirates manager Clint Hurdle said it's been important not to overreact during this rough stretch.
    Sergio Garcia still buzzing over his Masters title ahead of Players

    Sergio Garcia still buzzing over his Masters title ahead of Players

    While Padraig didn't go in to too much detail, Sergio did as he was speaking ahead of The Players Championship this weekend. Garcia, a lifelong Real Madrid fan, said being introduced to the crowd at the Bernabeu had been the highlight of his break.
    Trump to host Turkish president at White House on May 16

    Trump to host Turkish president at White House on May 16

    Ankara roiled relations with Washington in late April when it bombed Syrian Kurdish fighters allied with the United States .
  • Chelsea champions thanks to Michy Batshuayi's late strike against West Brom

    Chelsea champions thanks to Michy Batshuayi's late strike against West Brom

    Chelsea centre Cesc Fàbregas says at first they were very nervous because of the pressure from West Brom . That would have been a travesty for this football club and this team, who have worked so hard all season.

    Democratic Republic of the Congo hit by Ebola outbreak

    The last was in 2014, when - at the same time - parts of West Africa were fighting a separate outbreak, the worst in history. That outbreak was not connected to the massive epidemic in Guinea, Liberia and Sierra Leone that left thousands dead.

    Queen Elizabeth's Husband Prince Philip Announces Retirement From Public Engagements

    He has been by the queen's side during her 65-year reign, and they will celebrate 70 years of marriage in November. French media also mistakenly published stories wrongly suggesting the Duke of Edinburgh had died.


Most liked

Quintana takes Giro lead as crash affects other
The climb lasted 13 kilometers (eight miles) at an average gradient of nine percent with stretches at 14 percent. Britain's Geraint Thomas finished six seconds behind the Quick-Step Floors rider retaining his second place.

Hull relegated, Crystal Palace secures Premier League status
After just one season in the top flight they return to the second tier and join Sunderland and Middlesbrough on the way down. Despite Hull's relegation, few reputations have grown during the second half of this season as manager Marco Silva's.

Melissa McCarthy adds spice (and Spicer) as host of 'SNL'
Melissa McCarthy and Alec Baldwin have returned to Saturday Night Live , and it might be our favourite sketch yet. The press secretary whips out a Matryoshka doll set to explain why Comey had to go . "Here's Trump .

In testing missile, North Korea challenges South's new leader
For its part, the Russian defense ministry said Sunday that the missile launch "posed no threat to Russia", according to Reuters. The test was a message to the South days after a new president took office, she told ABC News.

Spurs Vs. Warriors Live Stream
Spurs live stream online and TV Coverage will be available to on ABC as well as the broadcasting network's flagship streaming app. I think the Spurs will give the Warriors more issues in this series than any team in the East would.

Triple Talaq Is 'Worst, Undesirable' Way To End Marriage
Earlier in the day, the apex court observed that it would examine whether the issue is fundamental to religion or not. The hearing on a batch of petitions challenging the constitutional validity of triple talaq will continue on Monday.

Nintendo details preliminary E3 2017 plans
The legendary games company is really showing its competitors why they've managed to remain in the industry for such a long time. Nintendo revealed that they will start off with E3 2017 with a spotlight feature on Tuesday, June 13, at 9 am PT.

UK Government In Dark Over Who Behind Cyber Attack
The hacking tool was originally posted online by a cybercrime group called Shadow Brokers, which dumps stolen NSA files. The attack hit Britain's health service, forcing affected hospitals to close wards and emergency rooms.

White House struggles to straighten its story on Comey
Sanders also told CBS News' "This Morning" that Trump is "very likely" to visit Federal Bureau of Investigation headquarters soon.

UK working to restore hospital systems after cyberattack
A malware called Wanna Decryptor was used in the attack, which encrypts files on a user's computer, blocking them from view. It said: "Like many organizations around the world, some Nissan entities were recently targeted by a ransomware attack".

Consistent Chelsea deserve top position, says West Brom's Pulis
It won't be easy. "They are a strong physical team, good coach and the atmosphere there can be very hot". The fans deserve Premier League football and we have to find a team to do that.

Stone vows to cooperate with Senate committee
The senators said they requested the documents on April 28, but Flynn "declined, through counsel, to cooperate with the Committee's request".

Same old story for Atletico against triumphant rivals Real
And Simeone is clinging to the hope of something similarly unexpected. "Football is a marvellous game and anything can happen". We will play until the last drop of possibility we have.

Is Trump Taping Conversations in the Oval Office? Sean Spicer Won't Say
Mr Comey had said he was "uneasy" before the dinner, according to former Director of National Intelligence James Clapper . His veiled threat was likely to add to the storm roiling Washington over Trump's abrupt firing of Comey on Tuesday.

Spurs' Tony Parker out for rest of playoffs with quad injury
The point guard isn't among the top players at his position, posting his lowest scoring and assist totals since his rookie season. However, several reports claim that the Spurs coaching staff is not counting on Parker to return to the court.