Instagram-hit Snapchat adds only 7 million users in Q2

Snap Snapchat

Snap (NYSE:SNAP) last released its quarterly earnings results on Thursday, August 10th.

Snap (NYSE SNAP) traded up 4.33% on Friday, reaching $13.49.

The stock declines came in part because Snap's lockup period ended on July 31.

Likewise, 27-year-old Spiegel also promised that he and co-founder Bobby Murphy wouldn't sell any of their 422 million Snap shares this year. Piper Jaffray Companies dropped their target price on Snap from $16.00 to $14.00 and set a "neutral" rating on the stock in a research report on Thursday, May 11th.

Snapchat added 7 million DAUs over the last quarter, taking its global user base to 173 million. In Canada and the US, there were 75 million daily users at the end of last quarter, compared to 71 million in the first quarter. On average, equities analysts expect that Snap will post ($0.57) earnings per share for the current year. "There is a lot of heavy competition and the company has not figured out how to monetise its audience yet", said Salvatore Recco, of the advisory firm 50 Park Investments.

This may indicate that they feel things may turn around for the company and their share price appreciate rather than continue to crash and burn.

Instagram hit 250 million daily users for its Snapchat-copycat product, Instagram Stories, in June, up from 200 million in April.

Also weighing on the stock: Employees will also be able to sell their shares on the public market for the first time next week, presenting an ultimate test of confidence in the company. The analyst asked which types of techniques Spiegel didn't like. The stock has an average rating of "Hold" and a consensus price target of $20.90. Snapchat had 148 million users this time previous year. Spiegel said this plan creates a cycle where users create and view more snaps.

Snapchat CEO Evan Spiegel wasn't in a dancing hot dog mood on Thursday.

The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc.in September 2016.

Snapchat shares have plummeted 17% as the social media firm saw user numbers and revenues grow slower than expected and losses rise almost fourfold, amid increasing competition from Instagram.

"We'd really like to see Android users more engaged", he said.

Snapchat became popular among young smartphone users for its disappearing messages, often photos or video but analysts say it needs to show strong growth to keep pace in the rapidly evolving social media sector dominated by Facebook. FB is not only catching up to the company in terms of revenues, but is making headway into key Google markets, such as video.

Snap reported revenue of $181.7 million, up 153 percent from a year ago but short of the $186.2 million anticipated by Wall Street. The company earns some revenue from branded or sponsored filters and lenses, but the bulk comes from advertisements.

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