Wednesday afternoon, the company lost $6 billion in market value overnight as the stock plunged more than 20 percent.
About $2 billion of Snap's $2.2 billion net loss in the January-March period was for IPO-related stock compensation costs.
It's not unusual for tech startups to post many years of losses as they build market share and recoup their initial investments. They were trading down significantly, at some points by more than 25 percent, during after-hours trading on the NYSE.
For the first time, Snapreported quarterly earnings Wednesday, posting revenue and user growth figures that came in well below Wall Street expectations.
Revenue was $149.6 million, nearly four times as much as a year ago but falling short of Wall Street estimates of $158.6 million. Enabling users to curate their photos and videos into a daily story, Facebook quickly found that the stories format was a major hit on Instagram when it unashamedly copied Snapchat previous year.
The slow user growth is not an insurmountable obstacle for Snapchat, but one thing is certain: any "inorganic" growth they exhibit will most likely be shadowed by Facebook, including acquiring other apps with key stand-out features.
During the investor call, CEO Evan Spiegel also took the opportunity to throw scorn on Facebook's relentless copycat strategy, dubbing it the Yahoo to its Google and suggesting it will win out as the dominant platform.
Rob Sanderson, an analyst at MKM Partners, says investors are anxious that unless [the company] quickly starts adding users, Snap's ability to sell more advertising will stabilize at some point.
Average revenue per user rose 181 per cent year-on-year, but was actually down quarter-on-quarter by 14 per cent to $0.90.
"I could easily see Snapchat get distracted by trying to be the end-all-be-all for users, as they receive continued growth pressures from Wall Street", said Jessica Liu, a marketing analyst for Forrester, in an e-mail.
"It's an easy way to grow daily actives quickly but we don't think those techniques are sustainable over the long term and it impacts our relationship with customers", he said. Snaps are viewed primarily through the Snapchat application, but can also be embedded on the Web or on television in certain circumstances.
Facebook has also added Snapchat-style "Stories" and camera special effects to all its core social apps: Facebook, Messenger, WhatsApp and Instagram.
The majority of Snap's business comes from the advertising it sells around curated Stories and the channels run by publisher partners on Discover. This the biggest reason of worry for Snap, as Instagram is getting even bigger into the second quarter (Q2) of this year, with around a whopping 700 million monthly users. The format has now garnered over 200 million daily active users on Instagram, Facebook said in its most recent earnings call. 131,859,462 shares of the company's stock traded hands.
The Welsh rider was second in the standings at the start of the stage but went on to finish over five minutes behind the leader. Welshman Thomas stayed down for several minutes before being able to continue and later revealed his shoulder had "popped out".
Some in the media are calling President Donald Trump's threat to cancel White House press briefings unprecedented, but it's not. Sanders said Thursday that Trump would "love nothing more for this investigation to continue to its completion".
According to the New York Times , on December 29, 2016, Michael Flynn spoke with Russian ambassador Sergey Kislyak. Trump ignored Obama's advice and tapped Flynn for the top White House national security role.
When did Gunn decide on that plot point? That is perhaps where this film excels, and possibly even outdoes the first film. With a minimum of seven characters all sharing screen time, the film does its best to equally develop each of them.
No sitting U.S. president has ever met with the leader of North Korea while in power, and the idea is extremely controversial. North Korea's latest launch of a ballistic missile Sunday drew strong criticism from the United States and other nations.
Many cancelled all routine procedures and asked patients not to come to the hospital unless it was an emergency. What's caused the attack? The NHS said it believed the malware variant was called "Wanna Decryptor".
At one point, Spicer's wrath causes him to tear down a decorative column and toss it into the front row of assembled journalists. Be proactive - Use the "Flag as Inappropriate" link at the upper right corner of each comment to let us know of abusive posts .
The continuation of a long and glorious streak of Champions League qualification is entirely out of Arsenal's hands. As the Premier League reaches its penultimate weekend, issues could be settled at both ends of the table.
The study was published in the CDC's Morbidity and Mortality Weekly Report in conjunction with the Tennessee Department of Health. Researchers from this study found that rural communities in Tennessee and West Virginia were significantly impacted.
South African Luvo Manyonga broke the Diamond League record with a massive jump of 8.61m in Shanghai on Saturday. Nine Jamaicans will participate in the event that follows the opening Diamond League meeting in Doha last week.
Current iPhone users "could have a much cheaper smartphone selling right next to it, and they don't look at it", Buffett said. "Change is painful for a lot of people", he said.
Hull completes trio of northeast clubs relegated from EPL
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Iannetta beaned, more bad blood as Dbacks top Pirates 11-4
Barbato and Iannetta exchanged texts after the incident and the Diamondbacks catcher said there are no hard feelings between them. Iannetta was struck by a 93 miles per hour pitch from Pittsburgh reliever Johnny Barbato in the seventh inning Friday night.
North Korea sends protest to US Congress over sanctions
North Korea on Friday slammed the United States Congress for passing a new law to tighten sanctions against the Pyongyang regime. The talks, which are held intermittently, are an informal opportunity for the two sides to exchange opinions and concerns.
White House calls Sally Yates a 'political opponent' of Trump
Flynn, a retired general once seen as a potential Trump vice president, has emerged as a central figure in the Russian probes. Michael Flynn and the Russian ambassador, which cost Flynn his White House job, had nothing to do with influencing the vote.
Upgrade the Surface Laptop to Windows 10 Pro for Free
This is Microsoft's answer to Chrome OS, and the new streamlined version of Windows 10 is being targeted mainly at students. Would you rather have a Surface Pro 5? Unlike other Surface models, it does not run the traditional version of Windows.
China downplays expectations from homemade C919 jet
The plane will be able to carry between 158-168 passengers, depending on seating layout, and is constructed mainly from aluminium. It also wants to move into the global jet market, which is estimated to be worth $2 trillion over the next two decades.
Rangers top Senators 4-1, tie series 2-2
Karlsson left Thursday's Senators loss with a lower-body injury after he collided with Rangers forward Chris Kreider. Each team got goals in the third period, courtesy of New York's Jimmy Vesey and Ottawa's Derick Brasard.