Snap shares hammered after US$2.2b loss

Snap shares hammered after US$2.2b loss

Snap shares hammered after US$2.2b loss

The company said in April that Instagram Stories alone had reached 200 million daily active users.

Facebook's fierce competition with Snapchat has only heated up in the months since Snap's IPO.

The new features enable users to loop videos for repeated play or to re-view an incoming Snap for as long as they like without the normal automatic deletion kicking in after one viewing.

With other companies such as Facebook introducing "Snap-like" features to their existing platforms, and the hype surrounding Snap appearing to die down, investors may see the tech company's valuation dwindle to more appropriate levels over the near-term as the market attempts to correctly price the company's long-term prospects and growth rates according to new information.

10 stocks we like better than Snap Inc.

Snapchat has come under intense pressure from Facebook in recent months, with the social media giant adding several Snapchat-like features to its own network, which includes Messenger, Instagram and WhatsApp.

Nearly all systems have been recovered, says Home Secretary — NHS cyberattack
The company said the virus has been localized and "technical work is underway to destroy it and update the antivirus protection". Among them are regularly updating the computer's security software which can correct any flaws exploited by the virus.


And, as a CNBC reporter pointed out, Snap's operating margin - a measure of revenue left over after costs during a given period - was deeply negative. The company's stock plunged about 24% in after-hours trading, as of this writing, after revenues were lower than expected and, most importantly, user growth slowed. Kerr said in an interview earlier this year.

CEO Evan Spiegel referenced their new competitors in a call with investors, saying "If you want to be a creative company, you've got to get comfortable with and enjoy the fact that people are going to copy your product if you make great stuff".

- How is Snap monitoring the number of ads shown to users to ensure they aren't frustrated or turned away from the app entirely?

When pressed on the call about competing with Facebook, Spiegel said he expects that "everyone is going to develop a camera strategy". "But I do think at this point, we're pretty much ahead in terms of the technology that we're building".

From February to March, Snap added an additional 8 million users, which was also under experts' forecasts. Analysts had been looking for faster growth of at least 40 percent, as an indication that Snapchat can retain its unique, young base of users. Facebook said it grew by 18% year-over-year and Twitter, another Snap competitor, reported a growth of 14% in that same time. Facebook was driven down by investor doubts about its ability to make money from mobile devices. This is a tactic that Twitter followers will be familiar with.

Latest News