Shares in Snapchat owner fall to record low after slowdown in user sign-ups

SHARES in the company behind Snapchat fell to a new low last night after a poor set of second-quarter results heaped more misery on its investors.

Snap, which pulled off the biggest technology flotation in years when it went public at a $24bn (£18.5bn) valua- tion in March, announced that it had signed up 7.3m new users in the three months to June 30, a noticeable slowdown on previous quarters. It also missed Wall Street revenue forecasts, sending shares down by as much as 13 pc in after-hours trading. Snap’s share price briefly fell below $12, less than half the $24 the company opened trading at less than six months ago.

Snapchat is now used by 173m people each day to share disappearing pictures and video. But analysts question its mass appeal and its ability to grow globally in the same way as rival social apps, such as Facebook.

Its share price has also been under pressure as shareholder lock-up periods expire, allowing early investors and staff to sell their shares for the first time. On Monday, 782m shares owned by employees will be made available to sell for the first time, more than doubling the number on the market.

Snap is not expected to become profitable until at least the end of the decade but its $443m loss last night still spooked investors. Its revenues grew 153pc to $181.7m, also below expectations.