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Snap stock plunges in USA following earnings report


XAutoplay: On | Off Delivering its first quarterly earnings report since coming public, Snapchat-operator Snap (SNAP) reported revenue below expectations, sending the stock plunging in late trading.

The company has reported 166 million daily active users, a 5% increase from the last quarter and a 36% Y-o-Y increase.

One problem has been that Facebook blatantly copied one of Snapchat's best features with its new Stories option on Instagram, now used by around 200 million people.

Although revenue almost quadrupled to $149.6 million, from $38.3 million in the year-ago period, but it's less than the $158.3 million that analysts were expecting.

Snapchat parent company Snap built a reputation for secrecy, but now, as a public company, it has to lay its cards on the table and open up the books to investors.

The company's net loss widened to $2.21 billion, or $2.31 per share, in the first quarter, from $104.6 million, or 14 cents per share, due to stock-based compensation around the IPO.

"Just because Yahoo has a search box it doesn't mean they're Google".


On average, analysts were expecting first-quarter revenue of about $169 million, but Snap reported revenue of just $150 million.

If that same price drop is sustained in regular trading Thursday, it will cost Spiegel more than $1.3 billion in the space of less than 24 hours. This represents a slowdown of 36% compared to the same period previous year.

In Europe, the company also added 3 million daily users, hitting 55 million DAUs in that region in the first quarter.

The trend makes Facebook look invincible, and it makes Snap look like Twitter.

One route Snapchat could take is acquisitions in the app space, buying up smaller but growing social apps that focus on groups. Facebook is a social media behemoth compared to Snapchat and its numbers prove the same.

Snap also recently announced a new self-service advertising platform for brands in an effort to grow its ad sales business and begin making more money from the users it already has.

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