Snap stock falls as alleged CEO comments rile some on social media
The dip put Snap on track to close at its lowest level in nearly a month, a bad sign following its $3.4 billion public listing that was the hottest by a technology company in three years.
Shares of Snap fell 1.5 percent on Monday as the Snapchat owner faced criticism for comments allegedly made by its CEO about not prioritising growth in India and Spain because they were "poor" countries.
The dip put Snap on track to close at its lowest level in nearly a month, a bad sign following its $3.4 billion public listing that was the hottest by a technology company in three years.
Twitter users using the #boycottsnapchat hashtag called for uninstalling the Snapchat app after a legal document unsealed last week alleged that Snap Chief Executive Evan Spiegel in 2015 said he was uninterested in prioritising growth in India and Spain because they were "poor".
The legal document filed in a Los Angeles state court concerns claims made in a lawsuit filed by an employee who left the company in 2015, and Snap has said it considers the litigation to be a publicity stunt.
"This app is only for rich people. I don`t want to expand into poor countries like India and Spain," Spiegel is alleged to have said.
"Those words were written by a disgruntled former employee. We are grateful for our Snapchat community in India and around the world," Snap said in a statement.
Snapchat is popular among people under 30 for applying bunny faces and vomiting rainbows onto selfies, but many investors are critical of its slowing user growth.
Snap has warned it may never become profitable.
Its stock was down 29 cents at $19.90. Shares of Snap have fallen 26 percent from their highest closing price following the public listing, and they remain up 17 percent from the company`s $17 IPO price.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
08:16 AM IST