Snapchat Yet again failed to make Wall Street’s doubts disappear.
Snap (, the parent company of Snapchat, is actually seeing steep increases in its losses while sales along with also also user growth continue to disappoint. )
Its losses for the quarter ballooned to $443 million, a nearly fourfold increase by the same period a year earlier along with also also worse than investors had expected.
The messaging service added just seven million completely new daily active users inside the second quarter, also falling short of estimates. of which at of which point has 173 million daily users, up by 166 million inside the first quarter.
The anemic growth renews investor concerns of which the messaging platform is actually struggling to grow into a mainstream service inside the face of fierce competition by Facebook (. , Tech30)
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Instagram hit 250 million daily users for its Snapchat-copycat product, Instagram Stories, in June, up by 0 million in April. of which’s far greater growth than Snapchat has seen.
Snap’s stock fell 15% in after hours trading Thursday following the earnings report.
Snap has struggled since going public in March amid concerns about disappointing user growth, mounting losses, along with also also the end of its stock lock-up period, which opens the door for insiders to sell their shares.
The young company posted a staggering $2.2 billion loss in its first earnings report in May, along with also also added just 8 million completely new daily active users during the quarter. Its stock fell as much as 25% overnight following of which report.
Evan Spiegel, Snapchat’s cofounder along with also also CEO, has sounded confident despite all of which.
“If you want to be a creative company, you have got to be comfortable with along with also also basically enjoy the fact of which people copy your stuff,” Spiegel said on its first earnings call in May.
“We believe of which everyone is actually going to develop a camera strategy,” Spiegel continued, before dropping what can only be described as an epic burn. “Just because Yahoo incorporates a search box doesn’t mean they’re Google.”
sy88pgw (completely new York) First published August 10, 2017: 4:38 PM ET