The Snapchat app is displayed

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Snap shares plunged 14% on Thursday after the social media agency reported greater than $400m (£310m) in quarterly losses and fewer than anticipated customers.

The share value fall prolonged a decline that began nearly instantly after Snapchat began buying and selling on the inventory market this spring.

The agency reported 173 million each day customers, up four% on the prior quarter.

However the firm is battling fierce competitors from Fb, which presents comparable options.

‘Lengthy-term success’

Snap’s inventory, which was priced at $17 for its public providing in March, is now buying and selling at lower than $14.

On Thursday, chief government Evan Spiegel pledged that he and fellow co-founder Robert Murphy wouldn’t promote any of their very own shares this yr, as an indication of confidence within the agency’s prospects.

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Snap’s inventory, which was priced at $17 for its public providing in March, is now buying and selling at lower than $14.

The shares had been price billions on the time of the IPO.

“We imagine deeply within the long-term success of Snap,” he informed analysts on a name after the outcomes had been launched.

Snap made its identify as a messaging app, with texts that may disappear. It now presents video tales, maps and different options.

The agency stated it’s working to woo advertisers with low costs and proof that its adverts are working – options it hopes will set it other than rivals.

‘Making progress’

Income over the three months to the tip of June was $181.7m, greater than double the identical interval in 2016.

However bills grew even quicker, reaching greater than $630.6m for the quarter, together with bills associated to stock-based compensation.

Snap’s person base elevated by greater than 20% year-on-year. However the agency added simply seven million new customers within the quarter, in comparison with eight million within the first three months of the yr.

Shares within the agency fell greater than 14% in after-hours commerce.

Mr Spiegel stated the corporate was making “quite a lot of progress”.

He estimated quarter of individuals with good telephones within the US, UK and France use Snapchat day-after-day, with customers sometimes spending greater than 30 minutes each day on the location.

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Meal-kit firm Blue Apron faces competitors from Amazon

Rocky IPOs

Snap just isn’t the one younger firm that has stumbled after going public whereas going through off with one of many tech giants.

The ready meal firm Blue Apron, which began buying and selling in June, has additionally misplaced a lot of its worth.

Analysts say Amazon’s plan to amass Entire Meals, combining its supply power with a well known grocer, has dimmed its prospects.

On Thursday, in its first earnings report since its inventory market debut, Blue Apron reported greater than $238m in income for the three months to the tip of June and losses of $31.6m.

Its shares fell greater than 17%, to $5.14, in comparison with $10 value set on the IPO.