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 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 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":[],"categories":[106],"tags":[3,284],"yoast_head":"\n![\"The](\"https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/4D61\/production\/_97290891_gettyimages-647162778.jpg\")
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