Dec 21, 2018

Snap stock hits all-time low ahead of the holidays

SnapChat logo is seen on an Android mobile device with a decline loses graph in the background. Photo: Miguel Candela/SOPA Images/LightRocket via Getty Images.

Snap Inc.'s stock fell below $5 per share Thursday, and hit its all time low of $4.85 Friday. The company went public last year at $17 per share and has gradually lost momentum since.

Why it matters: Despite dodging a bad press cycle that other data-driven ad companies faced, Snap has still failed to win over investors that are skeptical of the company's plan to grow its user base and business.

The details: On Thursday, Cheddar reported that employees have been told they won’t receive cash bonuses for the second consecutive year. According to Cheddar's Alex Heath, who broke the story, it's because Snap didn't meet internal goals for 2018.

"CEO Evan Spiegel had originally said the goal was to reach break-even in Q4. Snap lost $325 million against $298 million in revenue last quarter and hasn't reported for Q4 yet."

The big picture: Snapchat has had a hard year trying to recover from a poorly received redesign in Q1 and a failure to grow its user base throughout the year.

  • In its last quarterly earnings report, Snap reported 186 million daily active users, down 1% from the previous quarter when it had $88 million, also down from 191 million in 2018 Q1. It predicts a decline in for Q4.
  • The company has also lost many high-level staffers, including its communications lead, its content lead, its head of engineering, its head of business and its head of marketing.

Go deeper

Netanyahu says July 1 deadline for West Bank annexation won't change

Photo: Artur Widak/NurPhoto via Getty Images

Israeli Prime Minister Benjamin Netanyahu said Monday at a Likud Party faction meeting at the Knesset, Israel's parliament, that his July 1 deadline for starting the process of annexation in the West Bank will not change, according to people in attendance.

Why it matters: The White House and the State Department have stressed over the last few weeks that the deadline set by Netanyahu is "not sacred" to the Trump administration — and that any discussion of annexation needs to be in the context of renewed Israeli-Palestinian peace talks.

Trump threatens to move Republican convention from North Carolina if capacity reduced

President Trump on stage during the 2016 Republican National Convention in Ohio. Photo: Bill Clark/CQ Roll Call via Getty Images

President Trump threatened in a series of Monday tweets to move this summer's Republican National Convention from Charlotte if North Carolina's Democratic governor, Roy Cooper, doesn't allow the event to be held at full capacity.

The state of play: Mandy Cohen, the state's health and human services secretary, said last week that the GOP should "plan for the worst" as mass gatherings will be a "very big challenge" if the number of coronavirus cases in the state continues to increase, per NPR.

The wreckage of summer

Illustration: Sarah Grillo/Axios

We usually think of Memorial Day as the start of the summer, with all of the fun and relaxation that goes with it — but this one is just going to remind us of all of the plans that have been ruined by the coronavirus.

Why it matters: If you thought it was stressful to be locked down during the spring, just wait until everyone realizes that all the traditional summer activities we've been looking forward to are largely off-limits this year.