Snap hits a record low after growing more slowly than expected
Snap's shares took a dive after its earnings report was released. The company fell short on earnings and revenue expectations.
One of the numbers investors are most closely watching - the app's user count - also came up short. Snap added just 7 million users to a total of 173 million when Wall Street was expecting the company to add 10 million.
Shares fell as much as 16% in after-hours trading and have risen slightly to be 11.72% lower. Snap is trading at $12.01, an all-time low for the company.
Snap reported a loss of $0.16 per share which was slightly more than Wall Street's expectations of $0.15. Revenue came in at $181.7 million, lower than the $189 million expected.
Snap has been struggling to shrug off worries of its employees and company insiders flooding the market with new shares. Several lockup periods have restricted certain shares from being traded until recently. As many as 1.2 billion shares will be freshly available for trading by the end of the month, and investors are worried the new shares will drive down prices.
Snap's earnings report wasn't entirely negative. Users of the platform are highly engaged, and Snap's new ad buying platform is being rolled out which should reduce friction for advertisers. 60% of ads on the platform are now served programmatically.
CEO Evan Spiegel also noted that Snap's now infamous "dancing hotdog" has been viewed 1.5 billion times in the app.
Snap is down 28.82% since its initial public offering at $17.
