Snap’s CEO Fails Again

By Douglas A. McIntyre Published Apr 28, 7:30AM EDT

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Snap’s CEO Fails Again — © Carl Court / Getty Images

Snap Inc. (NYSE: SNAP | SNAP Price Prediction) turned in another horrible quarter, and its stock dropped near a 52-week low, retreating 18% to $8.61. According to Reuters, the company “warned results in the next quarter could fall below Wall Street’s targets.” The poor performance is the handiwork of long-time CEO Evan Spiegel. (Customers are abandoning these 25 brands.)
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Snap said its active users rose to 383 million. It does not matter much because the company has failed to monetize this base. “We are working to accelerate our revenue growth and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners,” he said. That “working” has not worked.
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Revenue for the quarter dropped 3% to $989 million. Its net loss was $329 million. Snap launched several new products, none of which appears to have helped. Spiegel has been chief executive officer of Snap since 2012, which means he has had a decade to ruin the company.
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Shareholders who want changes are out of luck. According to Snap’s 10-K, “Our two co-founders, Evan Spiegel and Robert Murphy, control over 99% of the voting power of our outstanding capital stock as of December 31, 2022, and Mr. Spiegel alone can exercise voting control over a majority of our outstanding capital stock.” Spiegel can drive Snap completely into the ground and not be stopped.
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Some shareholders may not be aware of Snap’s ownership structure. Their lack of due diligence could cost them money over time, as it has in the past. Over the past five years, Snap’s stock is down 26%, while the S&P 500 is up 71%.

Snap has no future as a public company. The sooner shareholders see that, the better off they will be.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.