Snap disappoints with quarterly figures - shares again on a downward slide
Snap, the company behind Snapchat, has disappointed investors with its user numbers. Its stock price plummeted.
The US messaging service announced on Tuesday after the close of trading that the number of daily active users rose by 15 percent to 191 million in the first quarter compared to the previous three months. However, analysts had expected an average of over 194 million.
Turnover grew by 54.1% to 230.7 million dollars within the space of a year. The loss was reduced from 2.21 billion dollars to 385.8 million dollars. Nevertheless, the share price fell by more than ten percent after the close of trading.
Snapchat is primarily used by people under the age of 30 who appreciate the fact that their messages are deleted quickly. The company primarily makes money from advertising and competes with Google and Facebook.
Snapchat shares plummeted by eight percent in February - corresponding to a stock market value of around 1.7 billion dollars - when reality TV star Kylie Jenner, one of Snapchat's most influential users, published a tweet. The reason was an update to the app, which was not well received by many users: "Sooo does anyone else not open Snapchat anymore? Or is it just me . . . ugh this is so sad," wrote Kim Kardashian's half-sister. Analysts assumed that the immediate slump in Snap shares was directly related to the influencer's statement. (hae/SDA)
