Personal Tech

Your day's going crap? Let's rap. Snapchat self-splat chat app chaps zap $350m, Wall St saps clap

A $3.45bn loss in a single year – buy buy buy, yell investors

By Shaun Nichols in San Francisco

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Snapchat maker Snap's stock price is through the roof today after the self-destructing-image flinger managed to lose only slightly less money than analysts predicted.

The photo-sharing upstart revealed this week that for the fourth quarter of fiscal 2017, ending December 31, it recorded:

For the full year:

If the prospect of losing $100m a month doesn't seem like a sound business strategy, you're obviously not a Snap investor. Expecting much lower revenues, Wall Street flipped out over the earnings and the trendy California-based biz's stock took off from Monday, climbing 46 per cent to close out Wednesday at $20.69.

The filing marks an upbeat ending to what has been a tumultuous first year for Snap Inc as a public company. The American pic-sharing app maker held its IPO in March, seeing its stock price jump in the first day from $24.47 to a high of $28.81, only to sink down to $20 a few days later. The stock would bottom out in August at $11.84.

By October, Snap admitted that one of its biggest projects, the Snap Spectacle headset, was such a flop that around $40m worth of inventory would have to be written off. Snap's stock price would hover between $14 and $16 for the rest of the year.

While the huge jump Wednesday gets Snap's price up closer to its IPO level, the upstart remains far from turning a profit in the notoriously fickle world of social networking. ®

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