CEO Evan Spiegel and Bobby Murphy Snap Inc. co-founders lost more than $1 billion each after Shares fell 25 percent to a low of $17.12 Wednesday, Bloomberg reports.
Snap Inc. reported earnings for first-quarter revenue that was below analyst estimates.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
The snapchat app reportedly added underestimated a number of users and the company is struggling to expand its users as Facebook Inc. copies its most popular features, including its “stories” tool, which lets people post short videos about what’s happening in their everyday.
In summer 2016 Facebook-owned Instagram publicized the success of its version of the copied features. It was not clear at the time if Snap can withstand the attack.
The company faced increased concerns when at Facebook’s annual developer conference last month, CEO Mark Zuckerberg announced his new focus on cameras and augmented reality, similar of Snap’s “camera company” tagline, which further fueling the antagonism.
According to the Bloomberg, Snapchat‘s co-founders each had a net worth of more than $5 billion on Wednesday morning. At the close of trading, they saw their fortunes drop to $3.8 billion.
