Snap Inc (NYSE:SNAP) shares hit a new 52-week low of $11.77 on Friday after the company reported its daily active user growth for the second quarter that missed consensus forecast.
Los Angeles-based Snap’s daily active users in the second-quarter jumped to 173 million, but fell short of 175.2 million anticipated by analysts surveyed by research firm FactSet.
Snap hadn’t projected its user growth for Q2, which some believe is the main reason Street analysts forecasted aggressively. Analysts at Jefferies said Snap’s reluctance to offer outlook will continue to harm shareholders as estimates keep fluctuating wildly that make results uncertain.
Soon after the results, several brokerages slashed their price targets for Snap stock. Jefferies sharply cut its price target for SNAP to $16 per share from $30 per share.
SNAP shares have plummeted more than 50 percent since its IPO in March. The 52-week range of the stock is $11.77-$29.44. The company has a market cap of $13.95 billion.
Snapchat made its debut in 2012 as a mobile app, which soon became famous among youngsters as the app offers bunny faces among so many other filters that users can apply on their pictures. Its most popular and colorful filter was a dancing hot dog that was viewed more than 1.5 billion times in snaps.
The messaging app has been engaging a healthy number of users since its launch, though slowing user growth in the recent past has become a cause of concern for many shareholders. One of the reasons behind slow growth is problems faced by Android users mainly outside the U.S. SNAP said it is trying to improve its app performance on Android devices and bring it at the level of its iOS app.
SNAP opened at $12.00 on Friday, and after hitting a low price of $11.77 and a high price of $12.34, finally closed at $11.83 at the end of the trading session.