Economy

Snap shares plummet 22% after first earnings report since IPO

Snap shares plummet 22% after first earnings report since IPO

Snap's revenue for the first quarter was $149.6 million, up from last year's $38.8 million. While $150 million in revenue is almost quadruple the $38.6 million the company brought in during the year-ago quarter, it marks a quarter-on-quarter decline of about $16 million.

In its first financial earnings announcement since its IPO, Snap Inc has failed to meet analyst expectations, following the well-trodden path of Facebook and Twitter, and resulting in a 20% drop in share price after the earnings call. After revealing that the company had a net loss of $2.2 billion for the first quarter, shares of Snap are down over 25% to $17.20.

Evan Spiegel, co-founder and chief executive, said on a conference call the company had been working on performance improvements and promoting its Android app, which could offer more growth globally compared with Apple's iOS. While Snapchat has 166 million daily active users, Instagram Stories has already crossed the 200 million threshold. The company generated around $8.3 million from the category in the first quarter of the year, up from $84.5 million in Q4, 2016. Just 5 million Snaps have been taken using spectacles - there are 3billion snaps on the Snapchat app daily.

Snapchat grew quickly from its early days, but that growth has slowed considerably. Last quarter, the company lost $170 million.

Snap Inc (NYSE:SNAP) reported weaker-than-expected results for the first quarter of the fiscal year 2017 (1QFY17) after the closing bell on Wednesday, May 10. For example, JPMorgan Chase expected the daily active users to reach 169 million. The whole Instagram app has about 700 million monthly users. Facebook, for example, has been snapping up features present in Snapchat and incorporating them into its own products.

However, other analysts were less pessimistic, noting the potential for future growth despite the missed targets.

The social network argued during its earnings call that numerous teenage users it has can't be reached by traditional television or print advertising, according to the Verge.


  • Discover Financial Services (NYSE:DFS) Q4 2016 Sentiment Report

    Cable Hill Partners LLC boosted its position in shares of Discover Financial Services by 112.1% in the third quarter. The business had revenue of $2.34 billion for the quarter, compared to the consensus estimate of $2.36 billion.

    Macron talks to Putin, faces media troubles

    The statement added that the have voiced readiness to develop "traditionally friendly" economic, politic. French President Emmanuel Macron arrives to lay a wreath on the unknown Soldier's tomb on May 14, 2017.

    Trump to create panel to study voter fraud, suppression

    ACLU's Voting Rights Project director said: "President Trump is attempting to spread his own fake news about election integrity". When done, they'd report to Trump on relevant policies, and vulnerabilities in voting systems.
  • Referee Steinhaus promoted as 1st women in Bundesliga

    The German Football Association ( DFB ) hopes the announcement will encourage more females to become referees. Steinhaus was born in Hannover, is 38 years of age and combines her refereeing with her job as a policewoman.

    Former Connecticut Senator Joe Lieberman On Trump's Short List For FBI Director

    It is rare for an Federal Bureau of Investigation director to be appointed without the full backing of the Senate, Schatz noted. Kasowitz also demanded a "full and immediate retraction" after the Times published women's claims of sexual assault by Trump.

    What we know about the global cyberattack

    The infection strikes by encrypting all the files on the PC and then displaying a ransom note demanding US$300 or $600 in bitcoin. Check Point has identified three Bitcoin addresses associated with WannaCry - and this is the cause for concern.
  • Ford might cut global workforce by 10 percent, reports claim

    Ford said in January it was cancelling a planned Mexico plant and adding 700 jobs in MI . "Car companies coming back to U.S. The buyout offers were a fraction of the 20,000 job cuts that some news outlets had reported Ford could announce this week.

    Former National Security Adviser Has Not Responded To Subpoena

    That's according to the panel's chairman, Republican Sen. "But we'll figure out on General Flynn what the next step-if any-is". That process could take years due to procedure, Politico reports.

    'Shadow Brokers' threaten to release more hacking tools in June

    The NSA has not commented on Shadow Brokers since the group emerged previous year , or the contents of past leaks. Shadow broker the hacking group which was behind the last week's Wannacry Ransomware attacks in the world.
  • The Russia-Trump Campaign Investigation May Now Be "Considered a Criminal Investigation"

    He also defended his decision to fire Comey last week, saying it was because of his poor performance and popularity. The bipartisan consensus afterward is that the Trump-Russia investigation has taken on a new level of seriousness.

    Officials Weigh In on Embassy Clash with President Erdogan's Bodyguards

    On Wednesday, McCain condemned Turkish authorities, stating that there is " no excuse " for their " thuggish " behavior. Two men - 49-year-old Ayten Necmi of NY state and 42-year-old Jalal Kheirabaoi from Virginia - were arrested .

    Satisfied over readiness of troops along LoC: Jaitley

    They have to be dealt with as a serious surgical problem and have to be dealt with accordingly". Jaitley was on a visit of the LoC in Rampur sector of Baramulla district.