Prince Alwaleed acquires 2.3% stake in Snapchat

Prince Alwaleed acquires 2.3% stake in Snapchat

Saudi investor Prince Al-Waleed bin Talal, whose investing firm owns stakes in Twitter and the Four Seasons hotel chain, said in a tweet that he'd purchased about $250 million worth of the company's shares.

The company said users logging in at least once a day dropped for the first time, hitting 188 million over the three months ending June 30, down from 191 million earlier this year.

However, there was positive news elsewhere in the results as parent company Snap Inc reported revenue of 262.2 million dollars (£202.6m), up 44% on this time past year and above analyst expectations.

The overhaul of the once fast-growing app turned some users away, and more people are flocking to Facebook Inc.'s Instagram, which has successfully copied Snap's most popular features.

Snap's stock was all over the map following its earnings.

The company also tried to deflect from its growth problems by announcing that it had 100 million monthly active users in North America at the end of the quarter.




The Average Revenue per User is a full ten cents above estimate, at $1.40.

"We have been working hard to iterate and improve Snapchat based on the feedback from our community", Evan Spiegel said on a call. That's a drop of 2 percent, or 3 million users, since the last quarter, and marks the first time that user count has dropped in the company's corporate history. That has come at the cost of the premium feel Snap had tried to ascribe to its ads, but given overall sales a jolt by attracting more advertisers. Prices fell 9 percent in the second quarter compared with the previous quarter and 52 percent from a year ago.

Shares in Snap climbed more than 12 percent in after-hours trading before reversing course. It was the first full quarter that all users were transitioned to the redesigned Snapchat, which rolled out this year.

Skepticism heading into Snap's better-than-expected results was highlighted by Wall Street's reaction to Snap's five quarterly reports since its March 2017 initial public offering: Shares responded positively only once.

Since then, the company has also launched a second-generation pair of its Spectacles, camera-enabled sunglasses that can upload content directly to Snapchat, in an attempt to diversify beyond software.

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