Snap Grows Daily Users to 173 Million, But Delivers Disappointing Earnings

Friday, 11 Aug, 2017

With that, those analysts have also cautioned that a large number of companies will be vying for related revenues and that many businesses have also developed similar offerings and features.

Snapchat once again failed to make Wall Street's doubts disappear. Snapchat's ad revenue was lower than forecast, as was user growth. Finally, Stifel Nicolaus downgraded shares of Snap from a "buy" rating to a "hold" rating and set a $20.00 price objective for the a research report on Friday, July 14th.

While the key measure of daily active users (DAU) was up 4% for Q2, the app still lagged behind its expected growth in users. The company's revenue was up 153.1% compared to the same quarter past year.

Investors remain unconvinced that Snapchat can turn its rapid rise to compete with the likes of Facebook and Twitter into solid profits.

Investors have always been sceptical of Snap's long-term prospects and its ability to turn rising revenues to profits for shareholders amid intense competition from rivals such as Facebook.

Stock was down 9.8% at the time of publication.

Still, shares in the firm fell more than 14% in after-hours trade.

Snap shares are pluning after the company released its second quarter earnings report, trading down about 13%.

Snapchat picked up fewer users and less revenue in the second quarter than analysts had expected, sending shares of owner Snap Inc. tumbling Thursday afternoon.

Snap Inc. on Thursday said its loss almost quadrupled to $443 million in the second quarter on slowing revenue and user growth, hurt by intensifying competition from larger rival Facebook Inc.

Snapchat users under age 25 spend more than 40 minutes per day on the app, while those over 25 spend more than 20 minutes a day on the app.

ILLEGAL ACTIVITY WARNING: "Snap Inc". The series Phone Swap, for example, has been averaging 10 million views per episode and is being adapted for television.

Spiegel and his team, meanwhile, insisted that it was "early days" for promising new products like "Snap Map", which allows users to see one another's locations.

The Snap Inc. logo appears on a screen above a trading post on the floor of the New York Stock Exchange on August 7, 2017. Still, analysts had doped for 175 million daily active users.

After losing more than $2 billion in the first quarter - a big chunk of that coming from paying employees in stock - Snap bled a further $443 million in the three months ending June 30.