Snap: disappoints again on user numbers, shares fall
(CercleFinance.com) - Snap Inc.
reported disappointing user numbers on Tuesday evening, deepening investors' concerns and sending its shares down on the Nasdaq today.
Daily active users (DAU) increased 8% to 188 million in the second quarter, the company said, compared to 173 million one year earlier, although decreased 2% from the first quarter of 2018.
"Moreover, management's commentary suggests further pressure on monetization and users and we believe makes out-year consensus numbers too high," one analyst noted.
The professional says he remains skeptical on the Santa Monica-based company's prospects, because of competition from Facebook/Instagram, a weak presence outside the US, and lackluster ad products.
These disappointing figures overshadowed the announcement the Prince Alwaleed took a 2.3% stake in Snap in a deal worth 250 million dollars.
The prince said the investment was a continuation of his strategy to invest in global technology companies, including Twitter, Deezer, JD.com and Lyft.
After falling by over 6% at the opening, the shares have picked up slightly, currently down 3.5% at 12.7 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
reported disappointing user numbers on Tuesday evening, deepening investors' concerns and sending its shares down on the Nasdaq today.
Daily active users (DAU) increased 8% to 188 million in the second quarter, the company said, compared to 173 million one year earlier, although decreased 2% from the first quarter of 2018.
"Moreover, management's commentary suggests further pressure on monetization and users and we believe makes out-year consensus numbers too high," one analyst noted.
The professional says he remains skeptical on the Santa Monica-based company's prospects, because of competition from Facebook/Instagram, a weak presence outside the US, and lackluster ad products.
These disappointing figures overshadowed the announcement the Prince Alwaleed took a 2.3% stake in Snap in a deal worth 250 million dollars.
The prince said the investment was a continuation of his strategy to invest in global technology companies, including Twitter, Deezer, JD.com and Lyft.
After falling by over 6% at the opening, the shares have picked up slightly, currently down 3.5% at 12.7 dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.