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00:00:00
>> 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.
00:00:21
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.
00:00:37
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.
00:00:58
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.
00:01:23
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.