The more immediate problem for investors is the company’s deteriorating ad business, and whether it is symptomatic of the economy or something more problematic at Snap itself. Are the co-founders just making sure they have an easier path to make donations, or are they fiddling while Snap burns?Ĭlearly, a $40 stock price is a not something Snap is going to see in the near future, so that is probably why no analyst posed a question about the dividend plan on the company’s conference call Thursday. ET You’re reading a free article with opinions that may differ from The Motley Fool’s Premium. While the two executives have been involved in a lot of philanthropy in recent years, the move seems self-serving. Market Cap Today's Change (-1.95) -0.26 Current Price Price as of July 19, 2023, 3:00 p.m. Is Snap (NYSE:SNAP) a buy Compare the latest price, visualised quantitative ratios, annual reports, historical dividends, pricing and company announcements. It is a way to let the founders continue to donate or sell stock without diluting their voting control and ownership stake - receiving one Class A shares for every supervoting share they currently own gives them a chance at liquidity. Have pronounced that their moves were meant to help their employees better handle their stock compensation, Snap showed its hand by blatantly stating in a letter Thursday that the move was specifically for their founders’ benefit. operates as a camera company in North America, Europe, and internationally. While other companies that have planned stock splits of late, such as Inc. (SNAP) Stock Price, Quote & News - Stock Analysis 13.37 +0.22 (1.64) Jul 17, 2023, 2:05 PM EDT - Market open Financials Statistics Dividends Profile 5D 1Y 5Y No 1Y chart data available About SNAP Snap Inc. The result is that Spiegel and Murphy own a whopping 99.5% voting control of the company.įrom 2017: Snap IPO boils down to one question: do you really trust Evan Spiegel? When it went public in 2017, it offered only nonvoting shares, known as Class A shares, an at-the-time unheard-of move that hasn’t been copied in a major IPO since, and gave Spiegel a “CEO bonus” that amounted to 3% of a company of which he already owned a healthy percentage. Since its inception, Snap has been built to please its founders, Chief Executive Evan Spiegel and Chief Technology Officer Bobby Murphy. The stock was tumbling sharply again in after-hours trading on Thursday, to around $12, after yet another troubling earnings report in which Snap’s founders couldn’t find it in themselves to even offer a financial forecast. Since that October warning, when Snap’s shares were trading in the vicinity of $75, shares have fallen around 78%. Had made to the iPhone’s ad tracking, and advertisers hurt by supply-chain woes, for a big disruption in its advertising revenue. But Snap’s stock has been under enormous pressure since late last year, when Snap blamed changes Apple Inc. That would seem like an easy target to hit, considering Snap was trading for $40 a share as recently as January. Full earnings coverage: Snap stock plunges 25% as advertising slows down, executives decline to offer forecast
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