Snapchat plummets on Wall Street after posting first-half loss
The owner of the social network explained that its revenues contracted by five percent during the first six months of the year.
Snapchat se desploma en Wall Street tras registrar pérdidas en el primer semestre | Cordon Press
Snap Inc, the company that owns the social network Snapchat, fell 14% on Wall Street after posting a net loss of $705 million in the first half of the year. As a result, its shares were trading on the stock market on Wednesday for a value of ten dollars.
Q2 23 Press Release FINAL 7-25-23 by Santiago Adolfo Ospital on Scribd
However, the company reduced by 10% the red numbers it recorded during the same period last year. Snap Inc. published a report in which it explained that its revenues contracted by 5% during the first six months of the year. It detailed how the company is in a period of transition in terms of advertising and investments for artificial intelligence.
Despite the situation, the application recorded that the number of active users reached 397 million by the end of the second quarter of 2023. This would be an increase of 50 million accounts compared to last year.
Specialists say that in order for the company to grow and capitalize on new users, it must establish a business model with a different strategy. "For a time, Snap managed to far outpace Meta Platforms' with revenue growth having quadrupled its top line from the end of 2018 to 2022," explain trade journalists Jeffrey Goldfarb and Sharon Lam.
The first time the company's share price reached historic lows, with values of $6.60 per share - losing more than 50% of its value for the year - was in October 2018.
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