Snap Inc. failed. The owners are again speculating on Wall Street's expectations, making their shares fall 16% and their market value drops to an unprecedented level of $ 9.2 billion, after March 2017 worth more than $ 30 billion
The number of daily users of Snapchat has only risen by as much as 7 million since the first quarter, while analysts had expected it to be at least 10 million, and it posted a loss of $ 443 million (1.661 billion riyals) during the second quarter, Compared to the same period in 2016, which was estimated at $ 116 million
But the reason is mainly for broad spending on marketing and advertising campaigns, but Snapchat has managed to raise its per-user profit per quarter to $ 1.05 from $ 0.50 in the same period in 2016, an excellent 109% increase, Social sector to increase its profitability through its existing users, rather than relying on the rapid increase of users.
What Snap Inc. achieved During the second quarter of 2017:
Revenues: $ 181.7 million (SR 681.375 million), which was expected to be $ 189 million (SR 708.25 million)
Daily active users: 173 million, expected 175 million
Indeed, even before the announcement of the results of the second quarter, Snape fell heavily, it was expected to fail in the fierce competition with Instagram and its owner Facebook and its advertising expansions.
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