>> This little white ghost is really scaring investors. Snap, parent company of messaging app Snapchat reporting anemic user growth, Tuesday. Sending the company shares plummeting more than 18% in after hours trading. Snapchat's daily active users while up 17% year over year dropped from the prior quarter far missing analysts' expectations.
Jennifer Saba covers media for Reuter's Breaking News.>> In hindsight, Snap went public too early. Clearly, their user growth is slowing. Their revenue is still growing, but it's a problem. Because advertisers aren't flocking to the platform as much as people had hoped and even worse is that their profit losses are widening.
I mean, it was almost 500 million in losses this quarter which is huge.>> CEO Evan Spiegel, who this year married model Miranda Kerr, finding that rival Instagram is doing far too good of a job modeling itself after Snapchat. Replicating features, such as filters, images and ephemeral videos and snagging $500 million total daily active users as of September more than triple that of Snapchat's.
Tuesday's earnings report, the third for Snap since it went public in March, its stock trading below the $17 IPO price since mid-July.