>> Snap Inc a huge success with millennials failing to impress investors Wednesday, in it's first earnings report since it's blockbuster IPO. The stock plummeting more than 24% after hours. Reuters tech editor Jonathan Weber in San Francisco.>> Their earnings reports is not what Wall Street was looking for.
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 also miss by quite a bit on the revenue, and I think that was a surprise.
Normally, companies kind of guide the expectations a little bit, especially in a first time 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 tanking in the aftermath.
But Facebook unlike Twitter has since more than bounced back, and is hot on the heels of Snap with a near identical crone of it's most popular video feature called Stories.>> So I think their fundamental concern is that Facebook is very aggressively copied their products. Instagram now offers much of what the Snap offers and so that's kind of a big long-term concern about the company.
And it's still a young company that has to prove that, that it can be what people hope it will be, and so far, not so great.>> Also taking a cut out of the first quarter, CEO Evan Spiegel's $800 million bonus for taking the company public. According to Snap Inc the move was intended to quote, motivate him to continue growing our business, and improving our financial results.