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:



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.

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.

D.C. Transit Scraps Idea For White Nationalist Train After Union Complaints
Metro Board Chairman Jack Evans had previously said that running a separate train was among options being weighed by officials. The rally is being led by the same people that led the deadly demonstration of the same name a year ago in Charlottesville.

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.

Trump administration announces $22b in fresh tariffs on China
The growth rate was the strongest in almost four years, and Trump said it was further proof his economic policies were working. In April, the administration had announced plans to slap tariffs on 1,333 Chinese product lines worth $50 billion a year.

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.

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 .

Alvarez stuns Kovalev in 7th to seize WBO light heavyweight title
For six rounds the reigning champion, who was Kovalev controlled the fight and was leading on the records of all three judges. The jab set up the rest of Bivol's arsenal - hooks to the head and body, followed by a right cross to the temple.

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.

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.

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.

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.

Kim Kardashian Wants to Change Chicago West's Name
So I unofficially instagrammed Chi Noel and I was like I'm doing this because I want her middle name to be Noel'. I swear I was like God is going to be like here is your twin so you feel so connected.

Sized Hail Injures Zoo Visitors, Kills 3 Animals
There were 3,400 people at the zoo at the time and roughly 400 cars in the parking lot experienced extensive damage. The zoo will be closed Tuesday so employees can take care of injured animals and fix broken windows and skylights.

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.