Marketplace Logo Donate

Daily business news and economic stories from Marketplace

Oh Snap! Shares drop 25 percent after disappointing results

Uh-oh. Wall Street was not impressed with Snap's first earnings report. Kevork Djansezian/Getty Images

Subscribe to our Newsletters

It wasn’t just the Snaps that were disappearing on Wednesday.

To say that Wall Street was disappointed in the first earnings report of Snap Inc., the parent company of the app Snapchat, might be an understatement, as the company reported a $2.2 billion loss and lower than estimated revenue.

Snap’s shares were $22.98 when the markets closed on Wednesday. In after-hours trading, however, its shares dropped more than 25 percent, reaching a low of $17.18. That came dangerously close to erasing any gains that the company had made since it went public in early March. In case you forgot, Snap’s initial public offering price was $17 a share.

Here are some other interesting numbers from the company’s earnings report:

Asked during the earnings call if Facebook scares him, Snap’s CEO Evan Spiegel laughed.

“If you want to be a creative company, you have to be comfortable with and enjoy the fact that people copy your products when you create great stuff,” he said. “Just because Yahoo has a search box, doesn’t mean they’re Google,” Spiegel added.

Last year, the company rolled out Spectacles — camera glasses than can sync with the app. Altogether, the company made a little over $8 million from the sale of Spectacles. Spiegel would not disclose what, if any, new products Snap might have in the works this year but promised that it would be a “fun rest of the year.”

So … more animal filters? 

What's Next

Latest Episodes From Our Shows

2:32 AM PDT
Aug 12, 2022
2:48 AM PDT
Aug 12, 2022
Aug 12, 2022
Jul 7, 2022
Aug 9, 2022
Exit mobile version