Snap Inc. will be taking drastic measures to shape its future as the company still isn't meeting much-lowered projections for growth. J P Morgan Chase & Co reissued a neutral rating and set a $14.00 price target (down from $16.00) on shares of Snap in a report on Monday, September 25th. Disappointing results since the IPO have caused optimism to reach an all time low. They fell by 16pc as Wall Street reacted to Tuesday night's third quarter results, which revealed a sharp slowdown in user growth, continuing losses, and a $40m writedown on Spectacles, the camera-equipped sunglasses that it put on sale previous year.
Analysts were expecting revenue of $236.9 million. This misses the company's expectation of $237 million in revenue and a loss of $0.15 per share, according to TechCrunch. 15,324,269 shares of the company were exchanged, compared to its average volume of 19,690,000.
Snap also had to write off about $39 million (£29 million) in unsold Spectacles, its camera-equipped glasses that let users take photos and videos without firing up the mobile app from a phone.
Daily users averaged 178 million, less than the 180.5 million estimate of analysts surveyed by Bloomberg. Sheridan lowered his rating on Snap to sell from neutral and dropped his price target to 7 from 12.
Jennifer Aniston and Reese Witherspoon To Headline New Apple Original Series
Stetler will serve as the show's consultant and House of Cards writer Jay Carson will executive produce as well as pen the series. The Hollywood Reporter reports that the deal is for a straight-to-series, two-season order of 20 episodes for the untitled drama.
With President Donald Trump meeting in China with President Xi Jinping for the first time, US and Chinese companies signed deals valued at around $9 billion. Tencent is one of China's largest internet companies and is the leading provider of messaging services with its WeChat app.
"There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don't yet know how the behavior of our community will change when they begin to use our updated application", said chief executive Evan Spiegel who became the world's youngest billionaire in 2015. We're willing to take that risk for what we believe are substantial longterm benefits to our business.
Snapchat have never felt the need to explain the app to their users, and were content to let people use it rather than talking them through the process of the app.
Snapchat said the changes would make the application easier to navigate and increase its compatibility with Android devices to address its struggles attracting new users and turning a profit.