Snapchat parent Snap’s stock dropped more than 20% Thursday after an underwhelming earning report. At first blush, it might seem that investors overreacted. After all, as this chart from Statista shows, Snapchat is still gaining users each month. It added 8 million daily active users this past quarter alone, bringing its total to 166 million.
A big reason Wall Street is so pessimistic, though, is because even though Snap is still a young company, those last few bars are growing much slower than they were a year or so ago. Part of the reason for the slowdown could be problems with the Android version of Snapchat. Another reason could be Instagram’s seemingly successful assault on Snapchat’s best features. Either way, it’s not ideal.
Get the latest Snap stock price here.