Snapchat's growth stalls in Facebook's shadow in 1Q report

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

For one, Snap already has more daily active users than Twitter does, by his estimates, and it's growing both revenue and user-count more quickly.

After closing the day at $22.98, Snap's shares tanked 21.5% in overnight trading and continued to fall during trading on the New York Stock Exchange (NYSE) on Thursday, closing at $18.05, a loss in value of almost $6bn, according to The Guardian.

About $2 billion of Snap's $2.2 billion net loss in the January-March period was for IPO-related stock compensation costs.

A number of analysts recently issued reports on SNAP shares.

Shares of Snap (NYSE: SNAP) also declined in trading Wednesday to close at $22.97. Snap stock plummeted 24% to $17.59 per share after the company's first quarterly earnings report since going public showed disappointing revenue growth and the slowest pace of user growth in years, reports Business Insider.

Snapchat added just five million daily active users in the final three months of a year ago, down from at least 10 million added in each of the previous four quarters. As of March, the company said it had about 161 million daily users.

Most analysts blame Facebook and the recent launch of Snapchat-like features on Instagram via Instagram Stories and Facebook Messenger. Meanwhile, Facebook itself boasts more than 1.9 billion monthly users. The stock was down 23 percent as the call, a first for CEO Evan Spiegel, chief strategy officer Imran Khan and CFO Drew Vollero, wrapped up Wednesday afternoon.

“Just because Yahoo has a search box doesnt mean theyre Google, ” he said. Snap is in its early monetization phase, and investors and analysts were expecting a continued growth.

According to its pre-IPO filing with the U.S. Securities and Exchange Commission, Snap reported 161 million daily average users by the end of 2016. For advertisers seeking a maximum audience, such data could make them less likely to spend money on Snapchat.

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

Investors are anxious that Snapchat will continue to falter as Facebook (NASDAQ:FB) continues to target the app's audience.

"We saw $100 million worth of short selling in this past week, ahead of the earnings and Snap short interest stands at $946 million, which is the highest level since the IPO", he said.

Out of this $8million came from sale of spectacles, a hardware product that the company has introduced. Stifel Nicolaus reissued a "hold" rating on shares of Snap in a report on Thursday.

Related News:

  • Texas Senate Passes Anti-Transgender Legislation

    Texas Senate Passes Anti-Transgender Legislation

    It was brought by Coppell lawyer Jim Baudhuin, and alleged that the UIL was not adhering to its own policies on use of steroids. Sadly, the bill has already passed in the state Senate and is expected to go before the House any day now.
    Middlesbrough relegated after 3-0 defeat at leaders Chelsea

    Middlesbrough relegated after 3-0 defeat at leaders Chelsea

    Chelsea can be crowned champions at West Brom on Friday night while Sunday could spell the end of Hull's stay in the top flight. However Chelsea's remarkable form this season will encourage owner Roman Abramovich to sanction a lucrative long-term deal.

    North Korea accuses US, South Korea of assassination attempt

    Pyongyang accuses US and South Korea spy agencies of attempt to assassinate country's leader with biochemical weapons. It has described regular US-South Korea military exercises as plans to "decapitate" its leadership.
  • Mummies Discovered In Minya, Egypt

    Mummies Discovered In Minya, Egypt

    The Touna el-Gabal site dates back to the Greco-Roman period between the third century BC and third century AD. In April, eight mummies were uncovered inside a 3,500-year-old tomb in the southern city of Luxor.

    Wizards' Oubre suspended for Game 4 for knocking over Olynyk

    Oubre's incident with Olynyk came after Washington's Ian Mahinmi got into a brief scuffle with Jonas Jerebko of the Celtics. With that being said, I think the Celtics regroup and bounce back with a narrow win at home behind a big night from Thomas.

    Juventus will have to be at their best in Cardiff - Bonucci

    The Brazilian enjoyed eight successful years at Barcelona before deciding to move on last summer. Entering Tuesday, just four teams remain in Monaco, Juventus, Real Madrid and Atletico Madrid.
  • Trump and Putin to meet in July, Russian state media says

    Trump and Putin to meet in July, Russian state media says

    Peskov also said that there were no agreements reached about possibility of the meeting between President Putin and President Trump.

    Minecraft makes the Switch to Nintendo's latest console

    The legendary games company is really showing its competitors why they've managed to remain in the industry for such a long time. The E3 2017 Nintendo Spotlight will start before the actual event kicks off on Tuesday.
    Kevin Durant calls NBA combine waste of time for top prospects

    Kevin Durant calls NBA combine waste of time for top prospects

    Zagoria said former Arizona center Chance Comanche's draft placement will rely on his performance at the Combine and in workouts. His draft stock rose after he averaged 18.3 points, 4.7 rebounds and 2.4 assists on 44.3 percent shooting this past season.
  • Russia's Top Diplomat Meets With Trump at White House

    He met with Secretary of State Rex Tillerson at the White House early Wednesday, ahead of his visit to the Oval Office. Instead, they apparently focused on issues like ISIS and the ongoing war in Syria.
    White House furious after being trolled with Russia Oval Office photos

    White House furious after being trolled with Russia Oval Office photos

    As he was entering the Oval Office, a reporter asked whether the dismissal of Comey "cast a shadow" over today's meetings. He and Lavrov said they discussed the civil war in Syria, where Russian Federation backs President Bashar Assad.

    Computers in Europe, Asia Fall Victim to Ransomware Attack

    Russian media also said that the Investigative Committee, the nation's top criminal investigation agency, also has been targeted. Security firm Kaspersky Labs discovered more than 74 countries have been hit with this ransomware in the last 10 hours.


Most liked

Spurs coach Gregg Popovich attacks Trump again: 'he's in a game show'
As we saw in the Rockets series, the Spurs have a bevy of rangy wings that they can play if they want to go small. The Golden State Warriors has reached the Western Conference Finals for the third consecutive postseason.

US AG issues new criminal charging policy
DOJ officials call it a "false narrative" and say unless a gun is involved, most of those cases aren't charged period. In most cases, recommending a sentence within the advisory guideline range will be appropriate.

India boycotts China's OBOR summit, says it must respect territorial integrity
"We should build an open platform of cooperation and uphold and grow an open world economy", Xi told the opening of the summit. The prime ministers of Italy, Spain and Greece are expected, while Washington is sending a senior White House adviser.

Swansea closes in on EPL survival with 2-0 win at Sunderland
Swansea have picked up a vital seven points from their last three, but on the road they've lost six of seven winless matches. Pinball in the Swansea area results in the ball breaking for Ndong, 12 yards from goal , however he slices wide.

En Marche! Names 428 Candidates for French Parliamentary Election
The rejection could prove troublesome for Valls, who risks expulsion from his Socialist Party for backing Macron's candidacy. In the village of Pieusse where Robert lives, Le Pen received 271 votes in Sunday's runoff, five more than Macron's 266.

Sean Spicer Claims Delay in Firing Followed Protocol
Trump shouldered into the conversation in the morning, tweeting that it was the Obama administration, not he, that had given Lt. After those skeptical questions, Trump took no visible action against Flynn until a public outcry forced him to.

UK Working to Restore Hospital Systems After Cyberattack
Many canceled all routine procedures and asked patients not to come to the hospital unless it was an emergency. Europol said Saturday that the attack was of an "unprecedented level and requires global investigation".

North Korea sends protest to US Congress over sanctions
It's not unusual for Pyongyang to condemn Washington's moves to censure it, but direct protests to Congress are exceptionally rare.

White House Defends Changing Accounts in Comey Firing: 'Our Story Is Consistent'
Sanders also said that the White House would "love" for the investigation "to be completed so that we can all move on". And Trump himself tweeted later Wednesday, "Dems have been complaining for months & months about Dir".

United Kingdom working to restore hospital systems after cyberattack
May said: "We are aware that a number of NHS organisations have reported that they have suffered from a ransomware attack". Microsoft has released software patches for the security holes, although not everyone has installed those updates.

Coach snags handbag rival Kate Spade in $2.4 billion deal
The stock has risen 17% since December 27, a day before the Wall Street Journal reported the company was looking to sell itself. Sales fell slightly in the quarter to $271 million, while earnings declined to 1 cent a share from 5 cents a year earlier.

Next Weeks Broker Price Targets For Symantec Corporation (NASDAQ:SYMC)
The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link . The overall volume in the last trading session was 4.86 million shares, versus the average volume of 5.59 million shares.

Equipment water leak stalls spacewalk by 2 US astronauts
The EVA started over the Pacific Ocean near Hawaii and lasted 23 minutes, ending over the Gulf of Mexico. Air Force Academy in 1996 and was one of two astronauts to conduct the 200th spacewalk for the ISS.

Comey infuriated Trump with refusal to preview Senate testimony: Aides
But as demonstrated by Comey's departure three years into his term, that doesn't keep presidents from legally firing them. The firing has prompted Democrats to amplify their calls for an independent investigation of the Russian Federation case.

Don't call me Caitlyn: Baby name plunges in popularity
The agency started releasing its popular baby name list by gender in 1997 but has collected names dating to 1880. Perhaps this can be attributed to Kehlani Parrish, a singer/songwriter who was nominated for a Grammy in 2016.