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Snapchat Posts $2.2bn Loss After IPO

posted by n1 on Sunday May 14 2017, @07:52PM   Printer-friendly
from the oh-snap dept.

MrPlow writes:

Submitted via IRC for TheMightyBuzzard

Shares in Snapchat’s parent company Snap Inc. have plummeted in value by almost a quarter – to the tune of $6 billion. The drop comes after the first earnings report since the company went public showed a slowdown in user growth and revenue.

On Tuesday, the company posted a $2.2 billion loss in the first quarter, much of which was tied to compensation following the company’s IPO in March. After adjusting for the expected expenses, losses of $188.2 million were reported – greater than analysts anticipated.

The company’s stock dropped 23 percent in after-hours trading following the report, wiping a staggering $6 billion off the company’s value, according to Reuters.

Source: RT

Q1: 05-08-17 Earnings Summary via Seeking Alpha

Original Submission

 
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  • (Score: 2) by Kilo110 on Sunday May 14 2017, @11:21PM (1 child)

    by Kilo110 (2853) Subscriber Badge on Sunday May 14 2017, @11:21PM (#509637)

    Wall St and VCs have yet to figure this out.

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  • (Score: 2) by LoRdTAW on Monday May 15 2017, @01:04PM

    by LoRdTAW (3755) on Monday May 15 2017, @01:04PM (#509991) Journal

    Oh, they have already figured it out. IT doesnt matter if the app is useful or valuable in the long run. If a buck can be made you can be sure they will exploit it.

    They know it's a worthless platform right from the beginning. BUT it has market appeal thanks to the social media trend which makes it valuable in the short run. The short run is the "oh shiny" factor, the app trends, millions start using it and it suddenly has "value". They buy/sell/trade/whatever, make a fuck load of money and walk away after everyone loses interest. Then the next social web 2.0 IoT cloud app comes along offering a slightly different feature and the cycle starts again.