Snapchat maker Snap Inc. missed Wall Street’s expectations for its second quarter as a public company, sending its stock diving more than 16% in after-hours trading to an all-time low.
The number of daily Snap users only increased by 7 million from the first quarter; analysts were expecting that number to go up by 10 million. Snap also fell short of the Street’s revenue expectations. And the company’s net loss ballooned to $US443 million, compared to $US116 million at the same time last year.
It wasn’t all bad news: The company did manage to grow its average revenue per user for the quarter to $US1.05 from $US0.50 in the year-ago period, a healthy increase of 109%.
For a recap of Snap’s second quarter earnings, click here.
In other news:
Snapchat’s slowing user growth is damaging its status as advertising’s cool kid. Ad buyers go where the audience is, and the platform’s sex appeal is fading as its audience growth slows down.
Still, Snapchat has one solid advantage over its competitors in one key area. Discover not only offers advertisers an environment filled with better-quality content, but it is often content that they can more closely align with.
It might also help that Snap cofounders Evan Spiegel and Bobby Murphy have promised not to sell any stock for rest of the year. Facebook CEO Mark Zuckerberg made a similar commitment to not sell any of his shares after Facebook’s initial public offering in 2012, although Zuckerberg said he wouldn’t sell for a full year.
Speaking of Facebook, its big push into TV shows is an attack on YouTube, not Netflix. What separates Watch from Netflix or HBO and makes it a direct YouTube competitor is Facebook’s plan to feature videos created by individuals, not just entertainment and media companies.
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As for Google, the company canceled its town hall meeting on the gender memo yesterday. CEO Sundar Pichai cited safety concerns for employees before abruptly pulling the plug on the meeting.
Former Uber CEO Travis Kalanick is being sued by early investor Benchmark Capital over fraud allegations. Benchmark said it would never have approved three extra board seats if it was made aware of the controversy inside Uber.
Corona’s $US7.3 billion parent company has acquired the beloved craft brewer Funky Buddha. And now, some furious customers are threatening to ditch the beer.
Things aren’t looking up for Applebee’s, which is closing up to 135 locations across the US. Executives are blaming the difficulties in part on the restaurant chain’s attempt to ditch its ‘Middle America roots’ to win over millennial diners.
People are freaking out because their Amazon eclipse glasses won’t arrive in time. They’re also selling out everywhere else.
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