{"id":343975,"date":"2017-08-11T06:30:58","date_gmt":"2017-08-11T06:30:58","guid":{"rendered":"http:\/\/citifmonline.com\/?p=343975"},"modified":"2017-08-11T06:30:58","modified_gmt":"2017-08-11T06:30:58","slug":"snap-shares-plunge-14-as-losses-mount","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/?p=343975","title":{"rendered":"Snap shares plunge 14% as losses mount"},"content":{"rendered":"

Snap shares plunged 14% on Thursday after the social media firm reported more than $400m (\u00a3310m) in quarterly losses and fewer than expected users.<\/p>\n

The share price fall extended a decline that started almost immediately after Snapchat started trading on the stock market this spring.<\/p>\n

The firm reported 173 million daily users, up 4% on the prior quarter.<\/p>\n

But the company is struggling with fierce competition from Facebook, which offers similar features.<\/p>\n

‘Long-term success’<\/strong><\/p>\n

Snap’s stock, which was priced at $17 for its public offering in March, is now trading at less than $14.<\/p>\n

On Thursday, chief executive Evan Spiegel pledged 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.<\/p>\n

\"The<\/span><\/figure>\n

The shares were worth billions at the time of the IPO.<\/p>\n

“We believe deeply in the long-term success of Snap,” he told analysts on a call after the results were released.<\/p>\n

Snap made its name as a messaging app, with texts that would disappear. It now offers video stories, maps and other features.<\/p>\n

The firm said 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.<\/p>\n

‘Making progress’<\/strong><\/p>\n

Revenue over the three months to the end of June was $181.7m, more than double the same period in 2016.<\/p>\n

But expenses grew even faster, reaching more than $630.6m for the quarter, including expenses related to stock-based compensation.<\/p>\n

Snap’s user base increased by more than 20% year-on-year. But the firm added just seven million new users in the quarter, compared to eight million in the first three months of the year.<\/p>\n

Shares in the firm fell more than 14% in after-hours trade.<\/p>\n

Mr Spiegel said the company was making “a lot of progress”.<\/p>\n

He estimated that a quarter of people with smart phones in the US, UK and France use Snapchat every day, with users typically spending more than 30 minutes daily on the site.<\/p>\n

\"Blue<\/span><\/figure>\n

Snap is not the only young company that has stumbled after going public while facing off with one of the tech giants.<\/p>\n

The prepared meal company Blue Apron, which started trading in June, has also lost much of its value.<\/p>\n

Analysts say Amazon’s plan to acquire Whole Foods, combining its delivery strength with a well-known grocer, has dimmed its prospects.<\/p>\n

On Thursday, in its first earnings report since its stock market debut, Blue Apron reported more than $238m in revenue for the three months to the end of June and losses of $31.6m.<\/p>\n

Its shares fell more than 17%, to $5.14, compared to $10 price set at the IPO.<\/p>\n

–<\/p>\n

Source: BBC<\/p>\n","protected":false},"excerpt":{"rendered":"

Snap shares plunged 14% on Thursday after the social media firm reported more than $400m (\u00a3310m) in quarterly losses and fewer than expected users. The share price fall extended a decline that started almost immediately after Snapchat started trading on the stock market this spring. The firm reported 173 million daily users, up 4% on […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[106],"tags":[3,284],"class_list":["post-343975","post","type-post","status-publish","format-standard","hentry","category-technology","tag-ghana-news","tag-technology"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/343975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=343975"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/343975\/revisions"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=343975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=343975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=343975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}