Economy

Snap shares plunge 20% on weak user growth

Snap shares plunge 20% on weak user growth”

It may be too late for Snap's recovery, though, as creators have sprinted to Instagram Stories, where there are over 800 million viewers on Stories monthly (Sept. 2017), significantly more than Snap's 250 million monthly users. The stock was down 9.1% in active premarket trade, but was down as much as 21.4% earlier.

The millennial tech mogul lost more than $560 million of his wealth in the past 48 hours, as shares of the social media company tumbled more than 18% since the start of Tuesday. The company's quarterly revenue was up 62.2% on a year-over-year basis. equities analysts anticipate that Snap will post -2.83 earnings per share for the current year.

The planned redesign will be an attempt to make the network more intelligible to newcomers and advertisers who want to leverage Snapchat's popularity. Thirteen analysts have rated the stock with a sell rating, twenty-two have assigned a hold rating and twelve have given a buy rating to the company.

Snap expected to generate revenue of $237 million, but pulled in $208 million, while posting a net loss of $443 million, CNBC reported. For three quarters straight, Snap missed profit forecasts as it failed to grow Snapchat's user base, which directly ties to advertising revenue. Five analysts downgraded their recommendations on the stock, according to MarketWatch, while a dozen have reduced their price targets.

Since its IPO in March, Snap (TAG) has had a daunting road as its stock price continues to plummet, making Investor Relations of significant focus for the company and its CEO Evan Spiegel. J P Morgan Chase & Co cut Snap from a "neutral" rating to an "underweight" rating and decreased their price target for the company from $14.00 to $10.00 in a research report on Wednesday.

The largest mutual fund holders in SNAP are Price (T.Rowe) Growth Stock Fund Inc, holding 11.9 million shares (1.47% of outgoing shares), followed by Vanguard Total Stock Market Index Fund, with 5,459,111 shares. He said he believes Snap remains a "very interesting asset with great product innovation", but concerns that management lacks visibility into the business, the lack of a ramp in daily-average-user growth and uncertainty over user engagement led him to back away from his bearish stance. The stock had a trading volume of 51,178,844 shares, compared to its average volume of 20,360,000.

"As a result of our ownership structure, Tencent and Snap are not obligated to disclose changes in Tencent's ownership of our Class A common stock, so there can be no assurance that you, or we, will be notified of any such changes".



Like this

loading...
loading...

Latest


09 November 2017
WWE Sends Kevin Owens and Sami Zayn Home From European Tour
I'll be honest, I didn't have the opportunity to watch " Smackdown Live " last night, but from the clip that I saw, their conduct didn't seem too bad.

09 November 2017
Panera Bread Agrees to Acquire Au Bon Pain
They also helped lead to an unprecedented rush of investment into the restaurant space and other fast-casual chains. Au Bon Pain became a public company in 1991 and it bought a bakery two years later that was renamed Panera.

09 November 2017
Pain doctor faces more charges connected to patient deaths
A northtowns doctor, facing charges of illegally prescribing pain pills, now faces additional federal charges. He keeps me mobile", said Johnson, who has been a patient since she was in a vehicle accident 15 years ago.

09 November 2017
Parrot's screams for help prompt visit from sheriff's office
A sheriff's deputy in OR wasn't sure what he would find when he rushed to a home following reports a woman was screaming for help. Cautiously, the deputy approached the residence, likely anxious that someone inside could be in serious trouble.

09 November 2017
LePage Refuses To Implement Medicaid Expansion Until Legislature 'Fully Funds' It
If the measure is implemented, ME would be the 32nd state, along with Washington, D.C., to expand Medicaid. Some of the states that expanded Medicaid early have been paying for their share with taxes on providers.

09 November 2017
O'Neill arrives in Vietnam for APEC Summit 2017
Nearly a third (32%) believe developed nation multinationals are their biggest rival, down from 41% in 2014. Combined they now overtake competition from traditional developed economy multinationals.

09 November 2017
Wilshere given assurances by Wenger over Arsenal playing time
Manchester United target Mesut Ozil is demanding the number 10 shirt at Arsenal as his current club try and tempt him to stay. You're only as good as your last game. "I'm a proud Englishman and I want to be playing whenever I can".

09 November 2017
Meat filled with fish hooks found at Florida dog park
Police aren't sure who placed the meat, however, Bowen responded to a similar report at the same park two years ago. They stated they were not going to test the meat for chemicals but did find hooks in the meat that was taken there.

09 November 2017
Cullen Frost Bankers Inc. Sells 2686 Shares of Adobe Systems Incorporated (ADBE)
Rosenblum Silverman Sutton S F Incorporated Ca stated it has 3.2% of its portfolio in Adobe Systems Incorporated (NASDAQ:ADBE). Highland Capital Management Llc increased Amgen Inc (NASDAQ:AMGN) stake by 22,465 shares to 33,891 valued at $5.84M in 2017Q2.

09 November 2017
Cornerstone OnDemand (NASDAQ:CSOD) Given Daily Coverage Optimism Rating of 0.18
Raymond James And Associate holds 0% or 23,173 shares. (NASDAQ:CSOD). 625 were accumulated by Comml Bank Of Montreal Can. The Firm develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties.