Snap’s stock cratered Wednesday after a bad earnings report, falling nearly to its IPO price.
After-hours, the stock is hovering just above $US17, down 24% after Snap’s revenue and daily active user growth missed Wall Street expectations.
The company priced its stock at $US17 when it went public on March 2. It opened trading at $US24 after the IPO and has held fairly steady since. It closed regular trading on Wednesday at $US22.98.
However, the stock plunged after the company’s earnings, dropping down to near its original IPO price. Investors soured on the stock after Snap Inc. missed Wall Street expectations for its first quarterly earnings as a public company. Its Snapchat app reported that user growth slowed to its lowest pace in years.
Here are the key numbers from Snap’s Q1 earnings:
- EPS (adjusted): Net loss of $US0.20 vs. $US0.16.
- Revenue: $US149.6 million vs. $US159 million expected, up 286% from $US39 million in the year-ago period.
- Daily active users: 166 million, an increase of 36% from 122 million in the year-ago period.
- Net loss: $US2.2 billion.
Get the latest Snap stock price here.