Snap stock sinks after weak earnings
Snap Inc.'s stock fell over 14% in after-hours trading Thursday after the company missed Wall Street analyst expectations for both revenue and earnings during the second quarter.
Also, Snap co-founders Evan Spiegel and Bobby Murphy said they will not sell shares this year, showing commitment from the company's leaders amid the employee lockup expiration Monday. "We believe deeply in the long term success of Snap," Spiegel said on the call.
Bottom line: The company added 7 million daily active users in Q2 2017, but missed Wall Street expectations for user growth and grew slower than previous quarters. Average revenue per user — a key metric for investors to see how well Snap's advertising efforts are working — was up more than double for last year, but the company's profits were lower than expected after expenses were greater than what investors had hoped.