Snap shares slide as growth slows

Snap shares slide as growth slows

Shares in Snapchat’s owner have sunk after it reported disappointing growth in the first three months of the year.

In its first results since floating, Snap said the number of daily active users rose just 5% to 166 million compared with the last three months of 2016.

That was two million fewer than expected, but 36% higher than the same period last year.

The news sent shares tumbling more than 20% in after-hours trading in New York.

Snap’s adjusted loss of $188.2m was about $10m higher than analysts had expected, while the net loss soared to $2.2bn from $104.6m due to costs associated with the IPO earlier this year.

Revenue rose 286% for the quarter to almost $150m, but was also short of forecasts by about $9m.

Source: BBC News

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