Snap shares plummet 22% after first earnings report since IPO

In its first quarterly earning report after going public in March, the company saw growth slipping to its lowest in the past two years, reporting 166 million users at a growth rate of a mere 5 per cent.

Snap's shares tumbled 23 percent in after-hours trading on Wednesday to wipe some $6 billion from its market value, a humbling reversal for the company after its red-hot March initial public offering, the biggest for a USA tech company since Facebook Inc in 2012. But at that point, Facebook had 552 million regular users, more than three times as many as Snapchat.

On Tuesday, May 11, the company posted a $2.2 billion loss in the first quarter, much of which was tied to compensation following the company's IPO in March. Facebook was similar in 2012, with costs of $1.3 billion. Sumitomo Mitsui Asset Management Company LTD bought a new position in shares of Snap during the first quarter valued at approximately $2,119,000. This, however, fell short of Street estimates of $158 million.

After closing the day at $22.98, Snap's shares tanked 21.5% in overnight trading and continued to fall during trading on the New York Stock Exchange (NYSE) on Thursday, closing at $18.05, a loss in value of almost $6bn, according to The Guardian.

Earlier this week, Snapchat announced it would allow users to send images and video without time limits for the first time, expanding one of the app's signature features in what is seen as an attempted fightback against Facebook. Not to miss out on the trend, Facebook also launched disappearing stories this year. Among those expenses, CEO Evan Spiegel received a $750 million bonus for taking the company public.

Corbyn: PM's manifesto pledges are 'triple whammy of misery' for pensioners
One incensed voter tweeted in reply: "You were good in Taxi Danny but you need to poke your nose out of this one". Izzard, who identifies as transgender, stated that he would be campaigning for Labour in "boy and girl mode".

"If you ask any teen how they use Snapchat, (most) say they use it to text people", Britton said. It's essentially not a social networking application like Facebook or WhatsApp.

Still, there's another way Facebook is already historically beating Snapchat. However, its weak user growth remained consistent with expectations set by JPMorgan analysts.

"At the end of the day, just because Yahoo has a search box, it doesn't mean they're Google", he said, referring to Facebook's new camera feature with augmented reality - which puts the company in direct competition with Snap. It is Snapchat which has popularised animated AR selfie masks and facial filters. If the company wants to expand its user base, it will have to broaden its reach to include older people. So Snapchat can either keep up with the younger generations and "their evolving behaviors and attitudes", or grow up with its original audience as it ages, said Jessica Liu, an analyst at Forrester Research.

But Snapchat is trying to stay ahead of the curve.

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