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COMING UP:Share Opener Variant 2

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Transcript

00:00:01
>> Shares of Snap Inc., hitting on all time low on Thursday, falling more than 20% after it's first ever earnings report showed slowing Snapchat user growth, weak revenue and a more than $2 billion loss. Reuters Tech Editor, Jonathan Weber, in San Francisco.>> Their earnings report is not what Wall Street was looking for.
00:00:23
It came in light on the user growth, which is an issue that many people are concerned about. Can Snap retain its user growth? And it had a little bit of growth, but not what people were hoping for. And then, they all missed by quite a bit on the revenue and I think that was a surprise.
00:00:39
Normally, companies kind of guide the expectations a little bit, especially in a first out like this, so to have a significant miss on the revenue, I think, was a big surprise.>> Disappointing first time results from tech companies isn't unusual. Rivals Facebook and Twitter also flopped in their first report and their stocks cratered as a result.
00:01:00
Twitter shares never recovered and currently trade down, roughly, a third from the IPO price. But Facebook stock has more than bounced back and is hot on the heels of Snap with a near identical clone of its most popular video feature called Stories.>> So I think the fundamental concern is that Facebook has very aggressively copied their products.
00:01:22
Instagram now offers much of what Snap offers and so that's, find of a big long term concern about the company. And it's still a young company that has to prove that it can be what people hope it will be. And so far, not so great.>> Taking a big chunk out of the first quarter was CEO Evan Spiegel's $800 million bonus for taking the company public.
00:01:47
Snap Inc saying the move was intended to, quote, motivate him to continue growing our business and improving our financial results. Investors shocked to see all of the stock based compensation show up in a single quarter, instead of spread out over time.