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Snap’s Stock Tanks After Its Initial Public Earnings Report Missed Targets

Company's value dropped 20% after reporting a net loss of $2.2 billion in first quarter.

Finance By

Snap’s first earnings reports as a public venture got the company off to a rocky start. In the first public filing since its recent IPO, Snap reported a net loss of $2.2 billion in the first quarter of 2017, according to CNBC. That sent its stock price into a nose dive Thursday morning, dropping it from the $23 range down to $18 as soon as the trading day began.

This performance isn’t that unusual for highly-touted tech stocks, however. Facebook, Twitter, Yelp, and LinkedIn all saw double-digit percentage drops in their share prices on the day following their first earnings reports as a public company.

Still, the subpar revenue numbers won’t stop investors who are chomping at the bit, wanting to know about Spiegel’s vision for the future of the company and how he plans to take on giants like Facebook, who have launched competing tools.

Watch Spiegel discussing his business model at the 2015 Code Conference.

Read full story at CNBC