Snapchat shares plummet as company posts $2.2 billion loss
08:37, May 13, 2017
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Snapchat parent company Snap built a reputation for secrecy, but now, as a public company, it has to lay its cards on the table and open up the books to investors.
Snap IPOed in March, which raised $3.4 billion and propelled the company to a $24 billion valuation. Since then, it has been "look out below" for stockholders.
After the Snapchat earnings report was out, the company saw a decline in its shares by nearly 24-25 percent.
Meanwhile, $8.3 million still does seem like a drop in the bucket -whether you consider Snap's $2.2 Billion Q1 losses including the company's stock based compensation, or the $200 million or so without it. That is a loss of $5.78.
Snap's revenue for the first quarter was $149.6 million, up from last year's $38.8 million.
Investors are anxious that Snapchat will continue to falter as Facebook (NASDAQ:FB) continues to target the app's audience.
The company added about eight million new daily average users during the first three months of FY17, implying 36% year-over-year (YoY) growth.
It marks a slowdown from the 47.7 percent rise for the fourth quarter and 62.8 percent jump for the third quarter that the company reported in its IPO filing. Its loss in Q1 2016 was just $104 million.
"They need to acquire the next Snapchat - companies that are doing one thing right", Britton said. Additionally, clicking on the "looping" icon allows a video to play in a continuous loop.
Prior to Spiegel's comments, the clearest rebuke of Facebook from a Snapchat insider came from Spiegel's fiancée: supermodel Miranda Kerr. Lastly, instead of tools showing up horizontally across the top of the screen, they will now show up vertically along the right side of the screen. The tech giant's moves could be blocking future growth for Snapchat. Facebook as a whole dwarfs Snapchat eight times over with 1.8 million users. When questioned about this competition with Facebook Spiegel said that "Just because Yahoo has a search box doesn't mean they're Google".