Snapchat Stock Tumble | Future Of Snap Inc

Snapchat stock tumble… Snap Inc which is the parent company of Snapchat, one of the leading social media platforms currently on the market announced a massive loss. Almost a quarter of its value on when its newly listed shares dropped nosedived on Wednesday.

The company had reported a loss of $2.2 billion and slowing growth. Revenue was $149.7 million.

The announcement was the first earnings publication since the company made its initial public offering (IPO) in March. The company was valued at $28 billion at the time.

Snap’s adjusted loss of $188.2 million was around $10 million than market expectations, while revenue fell around $9 million short of analyst projections. While this has happened, I do not believe that this will cause a negative drop on the company overall.

They are constantly improving the social media platform which will keep enticing the population to engage with it. What we are seeing is that snap chat is most popular with under 25’s which will determine how they act in the markets in the future.

Dr Hannu Verkasalo, Verto Analytics’ CEO, said:

“Snap’s lukewarm IPO shows the company has yet to prove its worth to investors as a profitable social media platform based on monetisation metrics. However, in terms of user metrics, it’s established itself as one of the more successful new entrants in the social space over the last ten years – overtaking even Twitter with hourly and daily audience.”

What do you think will happen to Snapchat in the future? Read more here.