Home » Tech

Snapchat adds 7 million users but revenue falls below expectations

11 August, 2017, 03:42 | Author: Nadine Todd
  • Snap Grows Daily Users to 173 Million, But Delivers Disappointing Earnings

Snap generated revenue of $181.7 million during its second quarter, which ended on June 30, compared to $71.8 million during the same quarter in 2016. The business's revenue was up 285.6% on a year-over-year basis.

Also weighing on Snap shares is the end of a six-month period in which employee-shareholders couldn't sell their stock.

"Given the amount of speculation around the lock-up expiration, I feel it is important to note that Bobby and I will not sell any of our shares this year", Spiegel said on a call with analysts. On average, equities analysts forecast that Snap will post ($0.56) earnings per share for the current fiscal year.

That 17 percent implied is second-highest among 120 stocks reporting earnings Thursday through August 31, with at least $1 billion in market cap and open interest of at least 20,000 options.

Still, shares in the firm fell more than 14% in after-hours trade.

Snap, the parent company of Snapchat, is seeing steep increases in its losses while sales and user growth continue to disappoint.

Snap shares plunged more than 16.8 per cent to US$11.45, touching new lows before gaining back ground, in after-market trades that followed release of the earnings figures.

Several hedge funds have recently made changes to their positions in SNAP. Jefferies Group LLC reaffirmed a "buy" rating and issued a $30.00 price target on shares of Snap in a research report on Monday, April 17th. BlackRock Inc. acquired a new stake in Snap during the first quarter worth $211,934,000. The stock had a trading volume of 26,831,893 shares.

One concrete metric announced was that Snap generated $5.4 million in "Other" revenue, which would equate to around 41,500 pairs of its Spectacles camera sunglasses at a $130 price point. Finally, Harel Insurance Investments & Financial Services Ltd. raised its stake in shares of Snap by 654.0% in the second quarter.

But beyond fundamentals, Snap's share price, which at a recent $13.53 sits roughly 20% below its IPO price, has also been weighed down by fears about lock up expirations.

"(SNAP) Receives "Buy" Rating from Deutsche Bank AG" was originally posted by Rincon Hill News and is the sole property of of Rincon Hill News. If you are accessing this piece of content on another site, it was stolen and republished in violation of global copyright and trademark law.

Spiegel was more forward with the company's strategies on Thursday, saying Snap's focus will be on building creative tools that give users more ways to create snaps. Finally, Geneva Advisors LLC purchased a new stake in shares of Snap during the first quarter worth approximately $406,000.

Recommended:

  • West Nile Virus returns to Grant County

    West Nile Virus returns to Grant County

    Benton, Franklin, Grant, Kittitas, Lincoln, Okanogan, Pend Oreille, Spokane, Stevens and Yakima counties all reported cases. In addition to vaccinations, horse owners also need to reduce the mosquito populations and their possible breeding areas.
    Rockets' James Harden to appear on cover of NBA Live 18

    Rockets' James Harden to appear on cover of NBA Live 18

    "The demo features 'The Rise, ' the prologue section of NBA Live's new single-player career, The One", Good reported. EA Access members qualify for an additional 10 percent discount if they buy the game on Xbox One through the service.
    Texas Store Owners Fight Off Two Armed Robbers

    Texas Store Owners Fight Off Two Armed Robbers

    The video, released by the Arlington Police Department, shows two suspects entering the store called Z-Comm on July 18. The second suspect draws a weapon from his trousers and points it at the employees as they wrestle with his accomplice.
  • God's OK with United States  bombing North Korea

    God's OK with United States bombing North Korea

    Thank God for a President who is serious about protecting our country". "But when it comes to Chapter 13, he's not talking about individuals but about government".
    Apple's new iPhone is under production now!

    Apple's new iPhone is under production now!

    However, the big difference is in the front with no home button , hardly any bezels, and a lot of sensors on top. This came as an astonishment as the primary breaks of iPhone 8 recommended inbuilt unique mark sensor on screen.
    Blac Chyna mimes in lacy lingerie for rapper Belly's music video

    Blac Chyna mimes in lacy lingerie for rapper Belly's music video

    But the 30-year-old reality TV star's behaviour is said to have left members of his family feeling "deeply disappointed and frustrated".
  • The Standoff With North Korea Ends One of Two Ways

    The Standoff With North Korea Ends One of Two Ways

    The first THAAD launchers were declared operational in South Korea in early May 2017, days before the presidential election. President Donald Trump has touted increasingly reductive trade policy.
    Scientists Debunk NY Times Story About 'Leaked' Climate Change Report

    Scientists Debunk NY Times Story About 'Leaked' Climate Change Report

    As scientifically literate people have been saying for years, the rational argument about climate change and its origin is over. The last time I fact-checked The New York Times , the Gray Lady was getting a much needed geography lesson about Arkansas.
    Battlefield 1 now free to download from Origin and EA Access

    Battlefield 1 now free to download from Origin and EA Access

    Battlefield 1's explosive multiplayer action focuses on team play and unique combat roles on land, in the sky, and at sea. Battlefield 1 originally released on PS4, Xbox One , and PC back in October a year ago to a critical acclaim.
  • Jeffrey Lord ousted from CNN for Nazi salute

    Jeffrey Lord ousted from CNN for Nazi salute

    In a series of tweets following the use of the Nazi salute, Lord said he was "mocking Nazis and fascists" with the Nazi salute. Carusone responded: "Your headline has a mistake in it". "It's completely insane", Carusone told TheWrap.
    As North Korean tensions simmer, here's how stocks reacted to past crises

    As North Korean tensions simmer, here's how stocks reacted to past crises

    Silver futures for September delivery on the Comex rose 2.9 per cent, the biggest gain for a most-active contract since November. Rival TripAdvisor also slumped after its latest quarterly report showed that online and transaction revenue growth fell sharply.
    Frozen pizzas scattered on highway after crash

    Frozen pizzas scattered on highway after crash

    The trailer of the 18-wheeler was sliced open when it scraped the bridge on Interstate 30 near Little Rock, Arkansas. In the USA state of Arkansas in a traffic accident on the highway was scattered with boxes of frozen pizzas.


Popular

Majority Believe Current Congress Is A Failure
That's down slightly from ten years ago, before the passage of the ACA, when 64% supported the idea. However, the candidate who most benefits from that sort of situation in 2020 may be Trump.

Leah Remini Wants the Federal Bureau of Investigation to 'Raid' the Church of Scientology
Their statement goes on, "this shows the extent Leah Remini is willing to go to distort the truth about Scientology ". In doing so, she hopes to provide enough evidence of wrongdoing to prompt a federal investigation into the religion.

BBCI: Trump thanks Putin for ordering United States diplomatic staff be cut
President Trump ultimately signed the sanctions - and sanctions against Iran and North Korea - into law. Obama took action following allegations of Russian meddling in the 2016 presidential election.

Disney Starting New Streaming Service in 2019 - Movies Leaving Netflix
Back in 2016, Disney chose to invest $1.58 billion in BAM Technology which translates to 33 percent stake in the company. It will launch early next year, Disney said , and will be accessed through an enhanced version of the existing ESPN app.

Channing Tatum dances with employee at NC gas station
As of Wednesday night, the video on Tatum's Facebook page had over 10 million views and almost 80,000 shares. Tatum also caught several customers off guard, saying he was the manager and also took some photos with fans.