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.
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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.