Remember when Snapchat was the red hot darling of the millennial tech world? That seems like so long ago already. Snapchat turned down multi billion dollar offers and went on to a somewhat successful IPO, which was just wiped out after reporting its first quarter earnings. Snapchat brought in $149.6m and lost $2.31 per share due to expenses. Wall Street analysts, who are probably not social media saavy enough to realize Snapchat isn’t as cool anymore, expected a loss of 16 cents per share and revenue of $158m.
Now the stock is down more than 20% and the stock is trading at below $18 per share, while its IPO was $17 per share. This is not encouraging when you consider the fact that Instagram Stories is already eating Snapchat’s lunch and surpassing its userbase. Those social media saavy millenials are growing tired of double posting to both networks, and many of them are choosing Instagram over Snapchat. But hey, at least it’s not as bad as Facebook stories.
