*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.
New regulations from the U.S. government may cause the price of electric vehicles to go up.
English Wikipedia raked in more than 84 billion views this year, according to numbers released Tuesday by the Wikimedia Foundation, the non-profit behind the free, publicly edited online encyclopedia. And the most popular article was about ChatGPT (yes, the AI chatbot that’s seemingly everywhere today).
The highly-anticipated trailer for Grand Theft Auto VI is out earlier than expected.
AT&T announced a new partnership with Swedish communications company Ericsson.
Hackers accessed the personal data of 6.9 million users via the genetic testing company 23andMe.
The Biden administration says electric vehicles made with battery materials from China will not be eligible for the full EV tax credit under new proposed rules.
You may soon be able to charge your car while driving. Cheddar News explains.
Google is moving forward with its previously-announced plan to delete inactive accounts and all associated data.
The network of nearly 4,800 fake accounts was attempting to build an audience when it was identified and eliminated by the tech company, which owns Facebook and Instagram.
Someone in China created thousands of fake social media accounts designed to appear to be from Americans and used them to spread polarizing political content in an apparent effort to divide the U.S. ahead of next year's elections, Meta said Thursday.
