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

Coronavirus spreads to more countries, and U.S. ups its case count

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The novel coronavirus continues to spread to more nations, and the U.S. reports a doubling of its confirmed cases to 34 β€” while noting those are mostly due to repatriated citizens, emphasizing there's no "community spread" yet in the U.S. Meanwhile, Italy reported its first virus-related death on Friday.

The big picture: COVID-19 has now killed at least 2,359 people and infected more than 77,000 others, mostly in mainland China. New countries to announce infections recently include Israel, Lebanon and Iran.

Go deeperArrowUpdated 5 hours ago - Health

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Wells Fargo agrees to pay $3 billion to settle consumer abuse charges

Clients use an ATM at a Wells Fargo Bank in Los Angeles, Calif. Photo: Ronen Tivony/SOPA Images/LightRocket via Getty Images

Wells Fargo agreed to a pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission on Friday for opening millions of fake customer accounts between 2002 and 2016, the SEC said in a press release.

The big picture: The fine "is among the largest corporate penalties reached during the Trump administration," the Washington Post reports.