Snap stock price slides to all-time low

Snapchat CEO Evan Spiegel speaks onstage during ‘Disrupting Information and Communication’ at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 8, 2014 in San Francisco, California.Getty/Michael Kovac

Snap shares slide to their lowest level on record Friday, touching $8.43 apiece.

The social-media company has been under pressure since releasing its second-quarter results on August. While the company beat sales and profits estimates, its number of daily active users fell 2% from the first quarter to 188 million, its first-ever decline. Wall Street analysts were expecting that number to increase to 193 million.

Jefferies analysts Brent Thill and Brian Fitzgerald recently warned that the user drop is a huge problem for Snap as its survival as a social-media platform depends on the need for users to have multiple friends using it. That means if users turn to other platforms such Instagram, it could cause “a negative flywheel” for Snap, and weigh on the company’s other strategies, they added.

The app maker has been constantly introducing new features, but that has been unable to lift shares. On Monday, the company introduced a new feature called Visual Search, which will allow users to point the app’s camera at shoes, jackets, and other products to find the item on Amazon and buy it. Shares fell 2% that day. 

And earlier this month, Snap introduced two new styles of its Spectacles camera glasses, nicknamed Nico and Veronica, which look more like standard sunglasses and looks more fashionable than previous versions of the Spectacles, which first launched in 2016. But shares dropped 4% following the news.

Snap have tumbled 43% this year. 

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Business Insider