Snapchat stock pops despite drop of 3 million users

Snapchat's daily user count slips to 188 million

Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world.

Revenue aside, Snapchat's daily active user base declined for the first time. It also recorded a narrower loss per share than analysts expected.

On Tuesday the messaging app's parent company, Snap Inc., reported its Q2 2018 earnings, and it included its first-ever decline in daily active users following a highly controversial decline.

Despite this miss, the stock is now rallying in after-hours trading.

Snap blamed the decline on the "disruption" caused by its redesign. "We are learning a lot as we continue to iterate based on customer feedback", Spiegel said about the smart glasses.

He said the company believes it has addressed users' biggest frustrations.

There was a small silver lining, too.

Average revenue per user (ARPU) increased 34 percent from the second quarter of 2017.


Shares in Snap were flat in after-hours trading following volatility that saw them fall briefly before surging more than 12 percent.

Snap also has been redesigning its app to encourage users to interact with more of its ad-supported videos. According to Spiegel, new Snapchat users are primarily using Android, and it's been trying to completely rewrite its Android app for over a year now.

Snapchat responded with a few design tweaks to appease users, such as making it easier to find Stories.

The beginning of the end for Snap was when Instagram copied their Stories feature in 2016.

"Snap has a major app redesign in process which remains one of the linchpins for future success and monetization, although it has encountered clear speed bumps on this front", said Daniel Ives, chief strategy officer at GBH Insights. Facebook suffered the single biggest wipeout in stock market history following its earnings report.

But it posted otherwise unusually strong numbers - as well as a $250 million investment from a Saudi prince - that sent its stock soaring as much as 13%, before it came crashing down and bouncing all over the place again following renewed concerns around daily user numbers going forward.

Saudi Arabia's Prince Alwaleed bin Talal, a well-known tech investor, announced on Tuesday that he had invested $250 million into the company, in return for a 2.3% stake.

Related News:

  • Last 'House of Cards' season to premiere just before midterms

    Last 'House of Cards' season to premiere just before midterms

    Wright's character replaces Frank Underwood, previously played by former leading man and overall bad person Kevin Spacey . Spacey didn't deny Rapp's allegations, but instead came out as gay in a statement responding to the accusation .
    Oil prices rise as United States  renews sanctions against Iran

    Oil prices rise as United States renews sanctions against Iran

    Oil prices rose on Tuesday as the US reintroduced sanctions against major crude exporter, Iran, tightening global markets. The price for Brent crude oil , the global benchmark, was up 1.22 percent as of 9:15 a.m.
    Two blazes form California's largest wildfire in history

    Two blazes form California's largest wildfire in history

    The SAFD hopes its crew will help in the fight, adding to the more than 4,700 fire personnel who are now battling the Carr Fire . Jerry Brown had written in his request to Trump for a presidential major disaster declaration .
  • Arsenal set to face Ousmane Dembele competition from Manchester United

    Arsenal set to face Ousmane Dembele competition from Manchester United

    A €100 million deal has been quoted which would see the Gunners pay €10 million for a season-long loan before a €90 million obligation to buy next year.
    European Union  pushing Britain towards no-deal Brexit — Liam Fox

    European Union pushing Britain towards no-deal Brexit — Liam Fox

    She wrote: "It will leave us half in and half out, still bound to European Union regulations and constraints". He put the chance of Britain crashing out without a deal at 60 percent.
    Salman Khan reacts to Priyanka Chopra quitting Bharat

    Salman Khan reacts to Priyanka Chopra quitting Bharat

    She is already doing Zero with Shah Rukh Khan, Thugs Of Hindostan with Aamir Khan and another film with Yash Raj Films. She replied referring media, "You people only make such stuff up, Salman is not upset with her".
  • Study finds female doctors better for heart patients

    Study finds female doctors better for heart patients

    At the same time, the authors stop short of advocating that patients necessarily ask for their doctors to match their gender. The authors say their work calls on the importance of having a greater representation of female doctors in the medical field.
    Celtic to sign Arzani 'within days...'

    Celtic to sign Arzani 'within days...'

    Danny Mullen put the Ladbrokes Championship winners ahead after eight minutes but Elton Ngwatala levelled up nearly immediately. Goals from defender Scott Boyd and the on-loan Bournemouth forward Ndjoli gave Steve Clarke's men victory.
    Dead fetus found on commercial plane at LaGuardia Airport

    Dead fetus found on commercial plane at LaGuardia Airport

    The account later tweeted to a frustrated customer that planes may be delayed "due to the medical needs of a customer". American Airlines also sent out an official statement, but offered no details about what had been found.
  • Homeland Officially Ending On Showtime After Season 8

    Homeland Officially Ending On Showtime After Season 8

    I can not say enough about how much Homeland has meant for the acceleration of our brand, not to mention to me personally. I'll be ready for a reprieve from that". "I'm always hoping for a little relief for Carrie", she said.
    Disney Trying To Reacquire Television Rights To Stars Wars From Turner

    Disney Trying To Reacquire Television Rights To Stars Wars From Turner

    Disney may look to evolve its current cable deal regarding Star Wars rights ahead of the launch of its streaming service. It also wants the freedom to offer " Star Wars " movies on the service at will, one person said.
    Ruby Rose cast as Batwoman on The CW

    Ruby Rose cast as Batwoman on The CW

    Rose, a genderfluid lesbian and activist for the LBGTQ community, wrote, produced, and starred in the short film Break Free . In a city desperate for a savior, Kate must overcome her own demons before embracing the call to be Gotham's symbol of hope.


Most liked

Zoo cleaning up after hail kills 2 birds, injures others
Tennis ball-sized hail killed two animals at a Colorado zoo on Monday, as well as damaged cars and injured a number of people. The Colorado Springs Gazette reports the short but intense storm passed over Cheyenne Mountain Zoo on Monday afternoon.

Angelina Jolie wants divorce finalised by end of 2018
Angelina Jolie isn't toning down her custody battle with estranged husband Brad Pitt any time soon, a source tells ET. News: 'Brad will be filming in L.A. for the summer and wants to see the kids on his regular custody schedule'.

Jerry Remy is facing another battle with cancer
In February 2017, he announced that the disease had returned, but he was back in the booth early in the regular season that year. Boston Red Sox announcer Jerry Remy has been diagnosed with cancer again, according to a statement released by NESN Tuesday.

Subtropical storm Debby forms in the Atlantic
Rain showers may be locally heavy at times, particularly over east to southeast around midnight, or sooner if conditions warrant. As a precaution, Hawaii County officials have closed three beaches - Whittington, Punaluu and Milolii beach parks - on Tuesday.

Liverpool beat Torino in final pre-season friendly
The former England worldwide believes that only Mohamed Salah and Virgil van Dijk would make it into Pep Guardiola's team. It was Sturridge who rounded off the scoring, steering in a header from Shaqiri's neat chipped cross late in the match.

Elon Musk tweets about taking Tesla private, shares soar
Tesla said in a regulatory filing in 2013 that investors interested in keeping up with Tesla should follow Musk's account. Tesla shareholders would need to vote in favor of going private before the decision is finalized, Musk concluded.

Who outbid Lance Bass for 'The Brady Bunch' house? Now we know!
Another losing bidder was Gregory Storm, a Hollywood screenwriter and director, who replied to the same Bass tweet that Scott did. How is this fair or legal?? "I feel used but most importantly I'm hurt and saddened by this highly questionable outcome".

China Won't Release Disney's 'Christopher Robin' Movie
No reason has been given for the decision, but it's believed to be part of a nationwide clampdown on references to author A.A. The film, starring Ewan McGregor and a CGI Winnie the Pooh , aspires to tell the tale of recapturing childhood innocence.

Samuel L. Jackson, Cobie Smulders join Spider-Man sequel
Now we know a couple of former S.H.I.E.L.D. agents are suiting up again to meet Spidey on the big screen for the first time. Because of this, Sony - which co-produces the Spider-Man films with Marvel Studios - did not comment on this casting.

Jennifer Aniston Has a Brilliant Idea for a ‘Friends’ Reboot
We are two best friends who have chose to part ways as a couple, but look forward to continuing our cherished friendship. Not because she's not good looking enough or anything, but because of the talents you have to perform.

Crusaders Coach Breaks Out In Dance After Super Rugby Win
After repeated infringements, All Blacks centre Ryan Crotty was sent to the sinbin in the 67th minute for cynical play . Smelling blood, the Crusaders quickly spread the ball to the fringes and fullback David Havili crossed the line easily.

First Alert Weather Day Wednesday: Isolated Severe Storms Possible
The Storm Prediction Center in Norman, Oklahoma has all of eastern Colorado under a marginal and slight risk for severe weather. The Colorado Springs Fire Department asked all patrons of the zoo to remain where they are as storms continue to pound the area.

Wolves set to complete £20 million deal for Middlesbrough’s Adama Traore
He had previously been linked with switches to Chelsea, Newcastle and Hudderfield Town, but the newly-promoted Wanderers look to have won the race.

Alvaro Morata will wear the No 29 shirt for Chelsea this season
And despite such woes, the 25-year-old is expected to lead the line for Chelsea in the coming season. That's because Morata has made the decision to swap his number nine shirt to the number 29.

Osinbajo sacks DSS Boss, Lawal Daura
This, according to him, is necessary to get to the root of the matter so that those responsible could be identified and punished. Daura has been directed to hand over to the most senior officer of the State Security Service until further notice . " Mr.