Snap slides to a record low

Getty/Michael KovacSnapchat CEO Evan Spiegel
  • Snap shares touched a record low of $US10.49 apiece on Tuesday.
  • Shares have plunged about 20% since the company reported a drop in daily active users.
  • Social media stocks will remain in focus this week as Facebook COO Sheryl Sandberg and Twitter CEO Jack Dorsey testify before Congress.
  • Watch Snap trade in real time here.

Snap shares pushed lower for a fifth straight session on Tuesday, touching a record low of $US10.49 apiece. They have plunged about 20% since the social-media company reported a drop in users just more than a month ago.

On August 7, Snap beat on both the top and bottom lines, but said its number of daily active users fell 2% versus the first quarter to 188 million, missing the uptick to 193 million that was expected.

“While our Monthly Active Users continued to grow this quarter, we saw a 2 per cent decline in our Daily Active Users,” CEO Evan Spiegel said in his prepared remarks on the company’s conference call.

“This was primarily driven by a slightly lower frequency of use among our user base due to the disruption caused by our redesign. It has been approximately six months since we broadly rolled out the redesign of our application, and we have been working hard to iterate and improve Snapchat based on the feedback from our community.”

Snap’s disappointing user metrics followed similar calamity from social-media peers Facebook and Twitter, which also saw their user bases erode in the wake of the fake news and censorship debate.

Social-media names will remain in focus this week as Facebook CFO Sheryl Sandberg and Twitter CEO Jack Dorsey testify Wednesday before the Senate Intelligence Committee. Then on Thursday, Dorsey will appear before the House Energy and Commerce Committee.

Snap shares were down 28% this year.

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