*By Michael Teich*
Snap couldn't convince enough new users to join its troubled platform in the first quarter of 2018, and there will be no recovery for the company's stock as long as the current management team remains in control, said Michael Pachter, an analyst from Wedbush Securities.
Shares of the social software company plummeted Wednesday, a day after it delivered quarterly results that seriously disappointed Wall Street. The social media company added just 4 million daily active users from the previous quarter, falling short of the 7 million estimate. The stock responded quickly, and closed down almost 22 percent on Wednesday.
Pachter said competition, an unattractive platform redesign, and Snap's inability to appeal to older users were among the top reasons for its sluggish growth. “Anything Snap comes up with, Facebook will copy and they'll be more effective at it,” he said.
Despite the negative sentiment on Wall Street, Snap still claims 191 million daily active users. Snap's CEO Evan Spiegel acknowledged in an earnings call that the redesign was a drag on revenue and caused "apprehension" among advertising partners, but he emphasized users are still spending over 30 minutes per day on the app.
Pachter, who gives the stock a "neutral" rating and a $10 target for 12 months, said he is resisting giving Snap a "sell" rating because, at some point, "somebody will buy" the company.
Toy's don't just have to be mindless objects we give children to pass time, they can be educational, brain stimulating, and emotionally calming. From toys that tell you stories to ones that let you test your creative side and music making skills, this year's Consumer Electronics Show presented some tech toys that could have some positive impacts on your mind.
Aerospace startup Atomos Space, which is developing a series of orbital transfer vehicles to help reposition satellites in space, recently closed on a $16 million financing round. CEO Vanessa Clark and COO William Kowalski joined Cheddar News to discuss the company's operations ahead of its launch.
The legacy automaker Ford says its keeping sustainability in mind in its return to the F1 racing circuit and its future EV plans following a turbulent quarter.
The Justice Department has been scrutinizing a controversial artificial intelligence tool used by a Pittsburgh-area child protective services agency following concerns that the tool could lead to discrimination against families with disabilities, The Associated Press has learned.
The U.S. Treasury Department has changed the standard for what kind of electric vehicles qualify for a federal tax benefit under the Inflation Reduction Act.
