Snap Inc. (SNAP) Nosedives 17% on Wider Net Loss

We recently published 10 Stocks Taking the Worst Hit. Snap Inc. (NYSE:SNAP) is one of the worst-performing stocks on Wednesday.

Shares of Snap fell by 17.15 percent on Wednesday to close at $7.78 apiece, as investor sentiment was dampened by a higher net loss in the second quarter of the year.

In its updated report, Snap Inc. (NYSE:SNAP) said net loss widened by 6 percent to $262 million from $248.6 million in the same period last year. Revenues grew by 9 percent to $1.345 billion from $1.236 billion year-on-year.

Despite the dismal quarter, the company narrowed its net loss by 27 percent in the first half of the year to $402 million from $553.7 million in the same period last year. Revenues increased by 11 percent to $2.7 billion from $2.4 billion.

Following the results, Snap Inc. (NYSE:SNAP) earned a lower price target of $10 from RBC Capital, as compared with the $12 previously. Still, the new figure marks a 28-percent upside from its latest closing price.

RBC Capital described the second quarter as a “tough Q2” for Snap Inc. (NYSE:SNAP), with planned ad platform development and surface expansion efforts not going according to plan.

Additionally, RBC Capital said that the underperformance would “continue to reinforce the bear case that SNAP cannot break out of being a smaller ad platform lacking the ability to durably grow its direct response business in-line with the market.”