Snap's stock fell more than 17% in after hours trading Thursday following their earnings report.
Snapchat maker Snap Inc. just recently released their earnings report, validating analysts’ skepticism of the company’s worth and ability to grow while rivals, such as Facebook, parent company of Instagram, compete in photo based features.
In the second quarter, Snapchat reported a net loss of $443 million, that is almost triple the loss from the same period last year, and a larger loss than what analysts expected.
The earnings report wasn't the only negative figure, Snap’s user growth was also slower than expected in the second quarter, up only 4 percent to 173 million daily active users. That compared to recent active-user growth of 17 percent a year at Facebook. Instagram's stories feature; similar (or to many a 'copy') of Snapchat now has more than 250 million daily active users.
On Thursday SNAP closed at $13.77. In after-hours trading, Snap’s stock tumbled almost 17 percent to trade around $11.50 a share following the earnings report. Since going public in March, Snap is down about 20 percent from its initial price of $17.
Back in May SNAP posted a drastic $2.2 billion loss in its first earnings report, and added just 8 million new daily active users during that quarter. Its stock fell as much as 25% overnight following that report.
This time around to ease investors, Snapchat CEO Evan Spiegel said he and his cofounder Bobby Murphy would not sell any of their stock this year to show they have confidence in their young company and investor should too.
Snapchat maker Snap Inc. just recently released their earnings report, validating analysts’ skepticism of the company’s worth and ability to grow while rivals, such as Facebook, parent company of Instagram, compete in photo based features.
In the second quarter, Snapchat reported a net loss of $443 million, that is almost triple the loss from the same period last year, and a larger loss than what analysts expected.
The earnings report wasn't the only negative figure, Snap’s user growth was also slower than expected in the second quarter, up only 4 percent to 173 million daily active users. That compared to recent active-user growth of 17 percent a year at Facebook. Instagram's stories feature; similar (or to many a 'copy') of Snapchat now has more than 250 million daily active users.
On Thursday SNAP closed at $13.77. In after-hours trading, Snap’s stock tumbled almost 17 percent to trade around $11.50 a share following the earnings report. Since going public in March, Snap is down about 20 percent from its initial price of $17.
Back in May SNAP posted a drastic $2.2 billion loss in its first earnings report, and added just 8 million new daily active users during that quarter. Its stock fell as much as 25% overnight following that report.
This time around to ease investors, Snapchat CEO Evan Spiegel said he and his cofounder Bobby Murphy would not sell any of their stock this year to show they have confidence in their young company and investor should too.