Late yesterday, Snap Inc. reported its quarterly financial results and the results were bad. So bad that company CEO Evan Spiegel just took a major hit in the net worth department.
Snap Inc.'s quarterly report showed that the newly-public company lost a mind-numbing $2 billion in the previous quarter alone. Revenue was also lower than expected with the company bringing in $149.6 million in the quarter instead of the $159 million that analysts expected. Perhaps most damning of all, user growth at Snap is much slower than Wall Street wanted. An estimated 8 million new Snapchat accounts were created in the last quarter, the slowest user-growth quarter yet.
With the bad news, Snap's stock is TANKING. At one point, the stock was down 25% and as of this writing, the stock is down 19.4%.
As the owner of 14% of the company's outstanding shares, no one is feeling the burn quite as bad as Evan Spiegel. The drop in stock price just shaved $1 billion from Spiegel's net worth overnight.
But perhaps what's most worrisome is that many analysts are saying this is just the beginning of the Snap selloff. As of this writing, Snap's stock is trading at $18.4 per share. Some apocalyptic analysts are predicting a day where Snap continues to fall all the way down to the low teens or single digits.