Snap's stock dives 17% after ad glitch, but user growth shines
Snapchat's parent, Snap Inc., reported second-quarter sales of $1.345 billion, with ad revenue growth slowing to 3-4% from 9% in the first quarter—but that wasn't enough for Wall Street.
A glitch in their ad system let brands buy ads way cheaper than usual, so ad revenue growth dropped to just 3-4%, down from last quarter's 9%.
Investors weren't thrilled: Snap's stock slid more than 17%.
Snap's user numbers are up, but they're still in the red
Snap fixed the pricing issue and says ad revenue is bouncing back. They're adding more ways for brands to advertise, like Sponsored Snaps in your inbox.
Meanwhile, Snapchat+ (their paid subscription) hit nearly 16 million users—up 64%—helping bring in $171 million this quarter.
Daily active users also jumped to 469 million, even though the company still posted a net loss and is now shaking up its engineering teams.
Senior VP Eric Young is leaving as part of the changes.
Takeaway for you
If you use Snapchat or follow tech news, this shows how one tech hiccup can shake things up big time—even for giants like Snap.
Plus, it's a peek at how social media apps are hustling to keep growing and stay relevant with new features and subscriptions.