Snap Plunges on Slowest Sales Growth as Advertisers Retreat
- Company says US users are spending less time on Snapchat video
- Snap has cut workforce to focus on revenue-generating projects
This article is for subscribers only.
Snap Inc. reported its slowest quarterly sales growth ever, saying that a decline in advertising spending continues to drag on results. Shares plunged 28% at the open in New York, the most since July.
The maker of the Snapchat app said third-quarter sales increased 6% to $1.13 billion. That was just shy of analysts’ average estimate of $1.14 billion, according to projections compiled by Bloomberg.