San Francisco - Snap added fewer users than projected in the first quarter, a sign that Facebook’s strategy of copycatting virtually every feature of its Snapchat app is taking a toll on the newly public company. The stock tumbled 26%.
In its debut earnings report after a March initial public offering, Snap, whose mobile app lets users send disappearing video and photo messages, said it added 8 million daily active users in the period, for a total of 166 million, with growth from a year earlier slowing to 36%. Revenue also fell short of analysts’ estimates.
Snap is working to prove that it can attract a dedicated young audience in the competitive social-messaging market, justifying a market value of almost $27bn.