Snap (NYSE:SNAP) stock dropped further as it reported another quarterly loss
According to latest reports, social media company Snap (NYSE:SNAP)stock price dropped 14% on Thursday after the announcement of quarterly results as it reported losses of more than $400m in earnings and added fewer than expected users.
Yesterday’s drop extended a plunge that started almost straight away after Snapchat’s famous IPO.
The company reported 173 million daily users, up 4% on the prior quarter. However Snap is finding it hard with severe rivalry from Facebook, which offers similar features.
At the time of IPO in March this year Snap’s stock was priced at $17, is now trading at less than $14.
Snap’s chief executive Evan Spiegel said in a statement made after the publicizing of results that he and fellow co-founder Robert Murphy would not sell any of their own shares this year, as a sign of confidence in the firm’s prospects. “We believe deeply in the long-term success of Snap,” he added.
Snap’s stock, which was priced at $17 for its public offering in March, is now trading at less than $14.
The shares were worth billions at the time of the IPO.
Snap got fame as a messaging app, with texts that would vanish. It now offers video stories, maps and other features.
In the meantime the company said in a statement that it is working to woo advertisers with low prices and evidence that its ads are working – features it hopes will set it apart from rivals.
Revenue during the last quarter was $181.7m, more than double the same period in 2016.
Snap’s expenses however increased even faster, reaching more than $630.6m for the quarter, including expenses related to stock-based compensation.
Furthermore Snap (SNAP)user base enlarged by more than 20% from the same period last year. But the company added mere seven million new users in the quarter, in contrast with around eight million in the first three months of the year.