Bark at fell to a new all-time low Wednesday, a day after a crucial earnings miss.
Shares unventilated at $11.03 after seeing the stock’s lowest ever open. The standard shed 21.9 percent from its Tuesday close of $14.13.
The company behind all the rage disappearing message app Snapchat, warned investors that its revenue increase rate would “decelerate substantially” in the subsequent quarter, dragged further largely by weaker ad revenue.
Snapchat ad prices — excluding its Story ads — plummeted 65 percent year over year in the first quarter after the attendance switched to an automated “programmatic” auction-based system from a direct sales events method.
Snap is also reeling from an unsuccessful redesign of its Snapchat app — and analysts are prognosticating more pain ahead.
The redesign has “created a number of challenges, which may examine difficult to overcome,” Evercore’s Anthony DiClemente wrote in a note — exceptionally as Snapchat faces increasing pressure from Facebook and Instagram’s lookalike bests.
The overhaul, announced in November and rolled out in subsequent months, separates extended publisher content from user content. The change has dinged ad gross income, relegating publisher content to an entirely separate and largely avoidable department of the app.
Snap has more recently hinted at reversing some of those swops, following complaints of a confusing and cluttered interface and difficulty finding eminence posts.
As of Wednesday’s close, Snap was down 19 percent since asseverating the redesign and nearly 50 percent from its 52-week high.
“Internet bands demonstrating revenue reacceleration tend not to meaningfully underperform in the following station,” DiClemente said. “Unfortunately, SNAP’s 4Q reacceleration in trends — and associated 4Q post-earnings goods pop — proved only temporary.”
— CNBC’s Michelle Castillo contributed to this record.
Disclosure: CNBC parent NBCUniversal is an investor in Snap.