Finance

Snapchat shares tumble as results miss Wall Street targets

Snapchat shares tumble as results miss Wall Street targets

The news, however, wasn't very good.

One somewhat shining point of Snap's earnings, however, was its user growth.

"The No. 1 question we receive about Snap is can it sustain its user growth and how big can it be", Ralph Schackart, an analyst with William Blair, wrote in an investor note this month. It saw EPS of -$2.31, while the expectation had been -$0.19. That's an increase of over 2,000 percent in just a year.

Snap's first set of results had been nervously awaited for any signs that Facebook's attack had damaged it, and traders responded by sending shares down by over 24pc, hovering just above the $17 the company floated at.

Investors are disappointed with Snap. The company has sharply divided the bulls and the bears, with bulls pointing to the company's popularity among teens and scalability, while bears have pointed to the the company's lack of profits, and weak growth in its user base.

Shares of the parent company of Snapchat were down on Thursday following the earnings report.

Unfortunately for its shareholders, SNAP stock missed that mark too. Spiegel is now worth roughly $4.35 billion, based on his most recent disclosures with the Securities and Exchange Commission. Even though revenue had increased by almost 700% the previous year, the company's net losses also increased to the tune of over $500 million. This would mean that Snap sold less than 62,000 Spectacles during the quarter.

U.S. strikes pro-Assad regime convoy near Syria's al-Tanf
Russia has condemned a U.S. coalition attack on Wednesday that it claims had hit civilians, Russian news agencies reported. The attack was the first such close confrontation between us forces and fighters backing President Bashar al-Assad.

In addition, Snapchat is also losing twice as much money as it was this time past year.

The company posted a Q4 net loss of $511 million.

In the IPO filing, Snap repeatedly said its user numbers and engagement "can be lumpy and unpredictable".

Snap Inc.'s quarterly report showed that the newly-public company lost a mind-numbing $2 billion in the previous quarter alone. WhatsApp also edged it out with 175 million users.

LinkedIn consistently had high performing quarters, before it was sold to Microsoft for over $26 billion in 2016.

The company rebranded as Snap Inc last year, and its $3.4 billion public listing was the hottest technology offering in three years.


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