Snap's shares fizzle out as its user growth falters

by Garry Watts August 12, 2017, 0:09
Snap's shares fizzle out as its user growth falters

The user base grew by 21 percent over the past year to 173 million, which was slower than analysts had expected.

Snap is expected to report revenue of $185.7 million, that's about $35 million more than its last report, with an earnings per share loss of $0.15 (or GAAP earnings of -$0.33).

But it wasn't all bad news.

Revenue meanwhile more than doubled to $181 million, though it was still below analysts expectations of $186 million. Rather, they show it's taking longer for the company to deliver on the user engagement and revenue-generation that investors were hoping for when it went public.

Snap, the owner of messaging app Snapchat, has reported a second-quarter loss of $443m (£341m), up significantly from the $116m loss it posted in the same period of a year ago. Instagram now has almost 700 million users globally. It lost US$443-million in Q2 2017 alone, compared to Q2 2016's loss of just over US$155-million. For example, the Snapchat app works more like a messaging product with a curated media section - it doesn't have a feed with ads slotted in like Facebook's namesake network and its Instagram app The company isn't focused on getting as big as possible, like Facebook.

Also weighing on the stock: Employees will also be able to sell their shares on the public market for the first time next week, presenting an ultimate test of confidence in the company. "(NYSE:SNAP) Shares Bought by NN Investment Partners Holdings N.V." was originally posted by Markets Daily and is owned by of Markets Daily.

Cuban Diplomats Expelled After US Embassy Staff 'Incidents' In Havana
President Trump has criticized the reopening of diplomatic relations with Cuba, calling it "a completely one-sided deal". In fact, American diplomats who were stationed in Cuba in 2016 returned home with hearing-loss issues.

Even a dancing hot dog can't get people excited about Snapchat again.

The dancing hot dog that Spiegel called the world's "first augmented reality superstar" was viewed more than 1.5 billion times on Snapchat, plus tons more as it was made into viral memes shared around the web.

Recent options transactions imply traders expect a 15 percent one-day swing for the stock in either direction following the quarterly results.

Uber Technologies Inc. faced a fresh round of turmoil Thursday, with its chief of global operations resigning and investors suing the company's former CEO. Instagram began mimicking Snapchat's key features previous year and boasts a much larger following - 250 million people daily use Instagram Stories, a feature developed by Snapchat that allows users to post disappearing pictures and videos for a 24 hour period.

"Given the amount of speculation around the lock-up expiration, I feel it is important to note that Bobby and I will not sell any of our shares this year", Spiegel said on a call with analysts. Investors have been anxious about the volatility of the stock, with a post-IPO ban on employees selling shares expiring on Monday.

Although that's an easy way to grow daily users quickly, Spiegel said, Snap doesn't believe "those sorts of techniques are very sustainable over the long-term". Snap's "other" revenue, which is largely comprised of Spectacles sales, was only $5.4 million, down from $8.3 million in the first quarter. Snap's quarterly revenue was up 153.1% compared to the same quarter a year ago.

Recommended News

TOP News

Iran's Rouhani pledges to continue missile programme as he begins new term
The move by Trump is likely to embolden his hardline critics, who say the nuclear deal was a form of capitulation. Rouhani also made a call for unity, saying it is time to act in unison to advance Iran.

'Game of Thrones' episode leaked online not related to HBO hack
HBO has not confirmed on how much data was stolen, nor is it commenting on the hackers' claims of what titles they have obtained. This comes after the episode premiered to 16.1 million Live+Same Day viewers, HBO's biggest premiere audience ever.

RSS cadres attacking, killing our men in Kerala, says CPI-M
It will only increase their determination to work harder against those who are perpetuating this operation", Jaitley said. This led to several bandhs across Kerala and a long phase of political violence. "We will not forget this heinous act.

Overwatch Summer Games are Live and Have the Best Skins
This year's Summer Games will offer competitive Lucioball , with a ranked season spanning the three weeks of the event. A top tier line-up I think, pluse you'll be able to purchase last year's Summer Games skins for 1,000 credits.

Ohio State Wexner Medical Center among nation's best for 25th straight year
News advises consumers on its website. "It is a real honor to be ranked so high among illustrious hospitals across the country". The data-driven rankings are compiled through a combination of performance measures and physician surveys.

Israeli minister asks for closure of Al Jazeera's offices in Jerusalem
Israel has regularly accused the broadcaster of bias in its coverage of the Israeli-Palestinian conflict. Al Jazeera , which launched in 1996, was barred from the news conference .

Tracking the Tropics: Franklin set to strike Mexico twice
National Weather Service showed Franklin moving steadily west-northwest until making landfall on the Yucatan just north of Belize. AccuWeather meteorologists are projecting Franklin to be close to hurricane strength prior to a second landfall in Mexico .

CW Announces Fall Dates For DC Superhero Crossovers
One notable detail about the 2017 crossover is that it will likely be the first true four-way crossover event. This is contrary to last year's Invasion crossover, which aired over four nights.

To save or jettison Dhinakaran — AIADMK dilemma
The moment Sasikala took control of the party, it's popularity nosedived and never ever recovered. Dinakaran is the nephew of party chief VK Sasikala.

Sessions vows crackdown on 'culture of leaks' in Washington
Only this week transcripts of rancorous calls between President Trump and foreign leaders surfaced in the Washington Post . Graham said. "It's just not fair to President Trump ".