Homepage / Technology / This awkward moment between analysts and Snap's CEO shows Wall Street's frustration with the stock
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

This awkward moment between analysts and Snap's CEO shows Wall Street's frustration with the stock

Disappearing photos are not the only snaps coming from Snapchat co-founder Evan Spiegel.

Wall Street analysts pressed for more details on Snap’s push notification policy and got a snappy response from the Snap CEO during Thursday night’s earnings conference call. The conversation was not helped by an inadvertently unmuted phone line where another analyst seemed incredulous at Spiegel’s response.

Rich Greenfield, analyst at BTIG:

“I’ve got two questions for Evan. Evan, on your first investor call and actually Imran [Khan, Snap chief strategy officer] just mentioned it earlier as well, you have both spoken about how others use growth hacking to inflate [daily active users] and how it really hurts …. the platform’s relationship with users. Yet we definitely, over the past quarter, begun to see push notifications from Snapchat, essentially alerting us to one of our friends or one of our connections has published a story, would you like to go see it.

Wondering despite Imran’s comment earlier, has your philosophy on growth begun to change? And then two, time spent on Snapchat and Instagram based on the recent comments from Instagram seems like it’s fairly similar. But there’s a very — my sense is there’s very little direct messaging that happens on Instagram, implying that most of their time spent is actually content consumption. When you think about Snapchat’s 30 minutes of usage per day, how much of that is actually Stories, including Discover, versus basically communications? Thanks.

Spiegel:

Yeah. So on the first question; we’ve been sending notifications like that for Stories for friends since 2014, so I’m not sure why you’re just seeing that now. On the ‘time spent’ stuff, I think time spent is definitely interesting metric because unlike daily active[users], time spent is zero sum.

So for us, in Q2, we saw over 40 minutes spent per day for users under 25, and over 20 minutes per day for users over 25. So I think that’s some strong growth for us on the time spent side.

We don’t break out Stories versus communication, but I think the important thing is we’ve done a very good job innovating around monetizing communication. I think historically, that’s been challenging for folks. So, you know, we’re really excited about the way we’ve monetized communication with our creative tools.

Greenfield:

So maybe just to be clear: What exactly is the ‘growth hacking’ that others do? If you sending push notifications is not ‘growth hacking,’ what are others doing that you consider to be growth hacking and not real DAU growth?

Spiegel:

Yeah, so I think there are plenty of examples online [laughs] if you want to go for a Google. But I think the most important thing for us is that when we’re telling you about content on a service that is really highly relevant to you and from your very close friends. And I think people, as they become more aligned on push notifications to sort of relax the standards there, and I think it’s important for our business.

Greenfield:

Thank you.

Operator:

Our next question is from Mark Mahaney with RBC …

Brandon Ross, BTIG analyst (loudly on hot mic):

I didn’t even understand his response!”

Source: FactSet and CNBC recording from Snap investor relations

The conversation came after Snap’s quarterly results fell short of analyst expectations, with revenue and user growth disappointing for the second consecutive quarter. The newly public social media company has faced aggressive tit-for-tat competition with the likes of Facebook and Google, which are moving into Snap’s territory of ephemeral messaging and augmented reality, and short, instant media clips, respectively.

Shares were under pressure during the call, dropping double-digits.

While the exchange was certainly one of the more heated during the quarterly call, there were several instances where analysts asked for more guidance on new products like Snap Maps or advertising tools, only to be met with vague responses that it was still “early days.”

The disconnect between Snap and Wall Street made it into Friday’s analyst coverage.

“Snap’s unwillingness to provide Street guidance will continue to be a disservice to shareholders as estimates continue to fluctuate wildly and it introduces unneeded uncertainty into results,” Jefferies analyst Brian Fitzgerald wrote in a note.

Snap, like many competitive tech start-ups, has been secretive about its products and operations. But some commentators perceived Spiegel’s response as arrogant.

BTIG and Snap didn’t immediately respond to a request for comment, though the BTIG analysts tweeted out a light-hearted response using Snap’s Bitmoji technology:

— CNBC’s Michael Sheetz contributed to this report

Disclosure: CNBC parent NBCUniversal is an investor in Snap.

Source: Tech CNBC
This awkward moment between analysts and Snap's CEO shows Wall Street's frustration with the stock

Comments are closed.