Snap (NASDAQ: SNAP | SNAP Price Prediction), owner of Snapchat, just posted another trainwreck of a quarter. The stock is down almost 35% this year, 29% over the last year, and 89% over the last five years. There is not a single thing in its business or its prospects that can save investors. They need to shut the door. The one who leaves last should turn out the light.
There are a few companies where investors can blame the disaster on a single person. In Snap’s case, this isn’t true. Evan Spiegel has been the CEO since the company started. By some measures, he is a billionaire. At the same time, long-term investors have lost almost everything.
There is nothing inventors can do to improve their fortunes. According to Snap’s 10-K, “Our two co-founders, Evan Spiegel and Robert Murphy, control over 99% of the voting power of our outstanding capital stock as of December 31, 2025, and Mr. Spiegel alone can exercise voting control over a majority of our outstanding capital stock.” Snap’s history is littered with Spiegel’s mistakes.
Among Snap’s problems is its size. Snap ranks 9th among social media companies. Snapchat ranks 9th among social platforms, with 956 million monthly active users. For comparison, Factbook, WhatsApp, and Instagram have over 3 billion users.
In the most recent quarter, Snap’s revenue was $1.53 billion, up 12% from the same period a year ago. The company continues to lose money every quarter. Its loss for the recent quarter was $89 million compared with a loss of $140 million in the same period last year
Snap said that its numbers were hurt by the war in the Middle East and the end of a proposed deal with AI company Perplexity. The $400 million deal is yet another fumble by management. Perplexity would have paid Snap $400 million in cash and equity over the course of one year as part of the transaction.
Snap’s most exciting announcement in a very long time is that it cut 1,000 people due to AI-driven efficiencies. Based on Snap’s deep problems, that won’t help.
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