Snap stock down 25% as social network struggles

Snap announced its third quarter results on Thursday, the first social media company to provide a financial update amid the ongoing economic tumult this quarter.

The company, which saw its stock price plunge to a fraction of what it was worth during 2021 highs, missed analysts' revenue expectations, returning $1.13 billion to 1, $14 billion expected. Snap stock fell from around $11 per share to $8 at the end of the session after the report.

Snap's revenue grew 6% this quarter, a figure that does not compare favorably to previous periods of double-digit growth. The company's net loss accelerated to $360 million, including $155 million of "restructuring charges".

The number of daily active users for the company increased by 57 million to 363 million in the third quarter, a 19% increase over the same period last year.

“This quarter, we took steps to further focus our business on our three strategic priorities: growing our community and deepening their engagement with our products, reaccelerating and diversifying our revenue growth, and investing in augmented reality,” CEO Evan Spiegel said of the quarter.

While other social networks are struggling similarly due to a combination of broader economic factors, rising competitors and the ever resounding shifts in Apple's ad tracking changes, Snap in particular has been beaten . In August, The Verge reported that Snap planned to lay off a fifth of its workforce, or approximately 1,200 employees.

The company did not offer a forecast for third quarter results and also declined to comment on its next quarter.