Snapchat announced its First Earnings Report, falling short of Expectations

But it's not going so well.

All the copying appears to be paying off for Facebook.

Snap Inc, formerly Snapchat, Inc, is a camera company. That's not bad, considering Facebook only posted 32 percent user growth at its own post-IPO quarterly report in 2012, but it was already at 552 million users then, compared to Snapchat's current 166 million daily active users.

Wednesday's results from Snap come just a week after Facebook reported solid first-quarter results, with double-digit revenue growth - as it has consistently since its IPO. It also said that the company lost $2.31 per share, though most of that was due to expenses related to stock-based compensation.

But Facebook - which once offered $3bn to buy the business - has upped the ante by offering features similar to Snapchat on its platforms including Instagram and WhatsApp.

Snap, for the first time, has revealed its earnings since becoming a public company in March this year. The results sent shares diving after-market Wednesday, and they were opened trading on Thursday down about 20% to $18.43 on Thursday morning. Enabling users to curate their photos and videos into a daily story, Facebook quickly found that the stories format was a major hit on Instagram when it unashamedly copied Snapchat past year.

In recent months, Facebook has launched Facebook Stories, a near-identical clone of Snapchat's most popular feature, also called Stories. See a trend here?

It says Shows is attracting audiences of around 8 million people. Why call when you can snap, after all?

Snap CEO Evan Spiegel is "so arrogant" and needs to find some humility, CNBC's Jim Cramer said Thursday. That could be a plausible explanation for Snapchat's own slow user growth over the Jan-Mar quarter.

The key will be how Snap recovers going forward. Facebook is a social media behemoth compared to Snapchat and its numbers prove the same.

That's almost a decade younger than the average age of retail clients trading Snap that day, TD said.

"The fact that they failed to live up to expectations, let alone exceed them, disappointed people", said BTIG analyst Richard Greenfield. That might help them expand their user base.

Teens, though, don't necessarily want to use the same messaging and socializing tools that their parents and grandparents are using. But to try and appeal to a 15-year-old at the same time as a 30-year-old might end up alienating both groups.

But Snapchat is trying to stay ahead of the curve.

In March, Facebook finished rolling out Snapchat's core stories format to every one of its major social networks.

Recommended News

  • Quintana takes Giro lead as crash affects other contenders

    Quintana takes Giro lead as crash affects other contenders

    A cyclist clipped the vehicle on the left hand side of the road and it wiped out Thomas and his team-mates. Thomas added: "I had felt good and then I crashed and my race was over".
    Overblown claim on new China trade deal

    Overblown claim on new China trade deal

    China had conditionally lifted its longstanding import ban on American beef a year ago , but few purchases have been made. Trump declared success last month in gaining greater access to China for U.S. beef suppliers following meetings with Xi.

    Microsoft offers free Windows 10 Pro upgrade to Surface Laptop buyers

    Microsoft has also announced Teams, which is a Slack-like app meant to improve coordination in the workplace and in schools. However, they are still prevented from installing and running background services without specific user authorization.
  • Melissa McCarthy adds spice (and Spicer) as host of 'SNL'

    The cold open was Baldwin's next to last appearance as Trump this season - and he's implied that his last will be next week. And if Sean Spicer's future as press secretary is in jeopardy, SNL fans may also see less of McCarthy.
    UK working to restore hospital systems after cyberattack

    UK working to restore hospital systems after cyberattack

    Moscow-based Kaspersky Lab detected that variants of a malware called "WannaCry" were used that encrypted the files. The ransomware encrypts data on the computer using an encryption key that only the attacker knows.
    'Caitlyn' Is Now a Less Popular Name Than 'Khaleesi'

    'Caitlyn' Is Now a Less Popular Name Than 'Khaleesi'

    Caitlyn Jenner has credited the " Caitlyn " inside her for winning her gold medal in the decathlon in the 1976 Olympic games. She continued: "Pronouns are always very interesting, I have a couple of the little ones who call me Boom-Boom".
  • Diamondbacks hope for good news on Iannetta before facing Pirates

    Iannetta remained facedown in the dirt for several minutes, and blood was dripping off his face as trainers attended to him. Drury has reached base in 17 of 18 home games this season and leads the National League with a.454 batting average at home.

    Justin Bieber spotted at Mumbai airport, leaving India

    It can be noted that the audiences paid upto Rs 74,000 for the tickets to watch him perform live. DJ Sartek, DJ Zaeden and Norwegian DJ Alan Walker opened the evening for him.

    McIlroy to have scans on his back in Belfast

    McGirt, the 2016 Memorial victor , contended last month at the Masters and looks to continue his strong play on tough tracks. One of the new clubs in his bag is a one-iron - something he made good use of on a course which demands accuracy.
  • San Antonio Spurs vs. Golden State Warriors Game One Livestream Online 2017

    They swept four games from Portland in the first round, and then swept four games from Utah in the conference semifinals. Leonard scored 26 points on 7-of-13 shooting in 23 minutes to go with eight rebounds and three assists.
    Sergei Lavrov, Russian foreign minister, jokes about Comey firing

    Sergei Lavrov, Russian foreign minister, jokes about Comey firing

    This meeting is the clear signal that United States relations with Russian Federation have improved, expert believe. ET: This piece was updated to include mention of the readouts , TASS photos, and Putin's pre-hockey comments.
    Syrian Kurds clear mines after taking town, dam from IS

    Syrian Kurds clear mines after taking town, dam from IS

    Last month, Erdogan said if Turkey and the United States joined forces, they could turn Raqa into a "graveyard" for Daesh. Erdogan has demanded that Washington undo the arms decision, and said he would take up the issue with Trump.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.