Snap slides to a record low

Snapchat
CEO Evan Spiegel
Getty/Michael
Kovac

• Snap
  shares touched a record low of $10.49 apiece on
  Tuesday.
• Shares have plunged about 20% since the company
  reported a drop in daily active users.
• Social media stocks will remain in focus this week as
  Facebook CFO Sheryl Sandberg and Twitter CEO Jack Dorsey
  testify before Congress.
• Watch
  Snap trade in real time here.

Snap
shares pushed lower for a fifth straight session on Tuesday,
touching a record low of $10.49 apiece. They’ve plunged about 20%
since the social-media company reported a drop in users just more
than a month ago.

On August 7, Snap beat on both the top and bottom lines, but said
its
number of daily active users fell 2% versus the first quarter
to 188 million, missing the uptick to 193 million that was
expected.

“While our Monthly Active Users continued to grow this quarter,
we saw a 2 percent decline in our Daily Active Users,” CEO Evan
Spiegel said in his prepared remarks on the company’s conference
call.

“This was primarily driven by a slightly lower frequency of use
among our user base due to the disruption caused by our redesign.
It has been approximately six months since we broadly rolled out
the redesign of our application, and we have been working hard to
iterate and improve Snapchat based on the feedback from our
community.”  

Snap’s disappointing user metrics followed similar calamity from
social-media peers Facebook
and
Twitter, which also saw their user bases erode in the wake of
the fake news and censorship debate. 

Social-media names will remain in focus this week as Facebook CFO
Sheryl Sandberg and Twitter CEO Jack Dorsey testify Wednesday
before the
Senate Intelligence Committee. Then on Thursday, Dorsey
will appear before the House Energy and
Commerce Committee.  

Snap shares were down 28% this year. 

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