Hit by the growth of Facebook-owned Instagram "Stories", photo-sharing platform Snapchat managed to add only seven million daily active users (DAUs) in the second quarter of 2017. It offers Snapchat, a camera application that helps people to communicate through short videos and images.
SNAP has been the topic of a number of analyst reports.
Revenues rose to $182m, more than double the figure for the same period a year ago - but investors had been looking for a figure of around $186m.
One concrete metric announced was that Snap generated $5.4 million in "Other" revenue, which would equate to around 41,500 pairs of its Spectacles camera sunglasses at a $130 price point. In the first quarter, revenue declined on a sequential basis from $165.7 million in Q4 of 2016 to $149.7 million.
Snap's stock has fallen off a cliff since its hotly anticipated initial public offering earlier this year.
While the doom doesn't spell imminent death, it's a sign that Snapchat could be relegated to the sidelines as a niche app for young people or worse, a passing fad rather than a major competitor for digital ad dollars like Facebook and yes, even the struggling Twitter.
Mom's exuberant back-to-school photo goes viral on Facebook
Willingham said she was surprised by the outpouring of support. "It was all a joke". Jena Willingham's kids are going back to school, and she ain't even mad.
Opening the door to more volatility, Snap employees on Monday will be permitted to sell shares for the first time since the IPO, in the second expiration of restrictions on sales by certain shareholders.
Additionally, Spiegel said the company is working to stabilize the backend infrastructure of Snapchat's Android app. The first lockup expired July 31.
Snapchat also wanted analysts to pay attention to the growth in North America, where the users are more valuable. Stifel Nicolaus' price target would indicate a potential upside of 30.72% from the company's current price.
Although that's an easy way to grow daily users quickly, Spiegel said, Snap doesn't believe "those sorts of techniques are very sustainable over the long-term".
Chief Strategy Officer Imran Khan said that 60% of Snap ads are now delivered programmatically.
WARNING: "Snap Inc. (NYSE:SNAP) Price Target Lowered to $18.00 at Stifel Nicolaus" was reported by Rincon Hill News and is the property of of Rincon Hill News. Oppenheimer & Co. Inc. acquired a new stake in shares of Snap during the first quarter worth $369,000. Snaps are viewed primarily through the Snapchat application, but can also be embedded on the Web or on television in certain circumstances. That seemed to suggest that Snap thinks it will eventually have opportunities to sell ads within the feature.
If that's the case, it's time for Spiegel to rethink things. The analyst asked which types of techniques Spiegel didn't like.