Snap Inc (SNAP) Should Sell Out to Alphabet (GOOGL)



The firm said average time spent per Snap user fell 32% sequentially. Analysts are expecting a loss of $366 million, or 30 cents a share, FactSet data show - wider than the company's loss of $115.9 million a year ago, according to the Wall Street Journal.

But it wasn't all bad news.

The Los Angeles-based company said daily active users reached 173 million in the second quarter, compared with 166 million in the prior period.

Snapchat revenue and user growth were lower than expected. The company reported ($0.16) EPS for the quarter, beating analysts' consensus estimates of ($0.29) by $0.13, Bloomberg Earnings reports. Revenue came in at $181.7 million, lower than the $189 million expected. Instagram in its entirety, meanwhile, had more than 400 million daily users as of February, the last official count. Even a beloved luminary like the breakdancing hot dog couldn't undo the gloom that had already settled on Snap's earnings report, which missed revenue and net loss estimates only slightly, but seemed to lead to another wave of disillusionment around the social-media company.

The anemic growth renews investor concerns that the messaging platform is struggling to grow into a mainstream service in the face of fierce competition from Facebook.

Evan Spiegel, Snapchat's cofounder and CEO, has sounded confident despite all this. "(NYSE:SNAP) Shares Bought by NN Investment Partners Holdings N.V." was originally posted by Markets Daily and is owned by of Markets Daily. He also said that 25% of people in the US, UK and France with smartphones use Snapchat every day. He said the hot dog, which has generated quite a few memes, has been viewed 1.5 billion times in the app. Headcount in the second quarter grew 10 percent to 2,600, down from the 27 percent growth rate in the previous quarter.

The company hasn't put ads in Maps, which highlights the locations of a user's friends and interesting locales around the world.

Spiegel touted Snapchat's Memories feature, which acts like a camera roll for saving photos and videos that would otherwise expire. Instagram Stories was launch 12 months ago and had more than 250 million users as of August 2. Spiegel said during the call that he and co-founder Bobby Murphy would not sell shares this year. Investors have been anxious about the volatility of the stock, with a post-IPO ban on employees selling shares expiring on Monday. Some investors believe that on an analyst conference call following the quarterly report, Spiegel may reassure investors that he has no immediate plans to sell.

"DAUs have slowed down while rivals like Instagram have demonstrated considerable growth". Parent company Snap Inc. should be doing better by now in generating sales. While that's a gain of 21 percent year-over-year, it represents growth of 4 percent (or 7 million new users) from the previous quarter, down from growth of almost 24 percent in the second quarter of 2014.