Snap Inc. co-founders see their net worths drop over year: report
Parent company of Snapchat reported its third-quarter earnings this week
Snapchat makes deep staffing cut to ‘weather’ the economic storm: Tech analyst
Tech analyst Pete Pachal discusses Snapchat and its plan to lay off 20% of its workforce as they prepare to launch their ad-supported subscription tier on ‘Mornings with Maria.’
Snap Inc. co-founders Evan Spiegel and Bobby Murphy have reportedly seen their net worths drop precipitously in a year.
Bloomberg reported Spiegel has had his net worth drop over $11 billion between Friday and the same date the prior year. The Snap CEO's net worth on Oct. 21, 2021, was $13.9 billion, whereas it stood at roughly $2.3 billion this afternoon, according to the outlet.
Snap CEO Evan Spiegel's net worth on Oct. 21, 2021, was $13.9 billion, whereas it stood at roughly $2.3 billion on Friday afternoon, according to Bloomberg. (Sipa USA via AP / AP Newsroom)
AMERICA’S RICHEST ARE ‘POORER’ THAN A YEAR AGO DUE TO INFLATION, MARKET DECLINES
Murphy’s fortune has reportedly also seen a significant drop. On Friday, the CTO's net worth was about $1.9 billion, a roughly 81% decrease, according to Bloomberg.
The pair hold a combined stake of roughly 25% in the company behind the social media app Snapchat, per Forbes.
The Snapchat messaging app is seen on a phone screen on Aug. 3, 2017. (REUTERS/Thomas White/File Photo / Reuters)
Snap released its third-quarter earnings Thursday after the bell, prompting the company’s stock to tumble the following day. Its shares have fallen over 80% year-to-date, Fox Business previously reported.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SNAP | SNAP INC. | 10.64 | +0.04 | +0.38% |
SNAP SETS OFF ALARM BELLS IN AD-RELIANT SOCIAL MEDIA SECTOR
The company said it generated $1.13 billion in revenue in the third quarter, a 6% increase from the same period last year when it posted $1.08 billion. That metric came in below analyst estimates. Meanwhile, its net loss widened from about $72 million to $360 million.
Factors like "platform policy changes, macroeconomic headwinds and increased competition" affected Snap's revenue growth in the quarter, the company said in its quarterly investor letter.
In this photo illustration, the Snapchat logo is seen displayed on a smartphone. (Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images / Getty Images)
"We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital."
Snap said it saw "decreased brand-oriented advertising spending" and "lower bids per action and lower overall campaign budgets."
SNAP CLOSING SAN FRANCISCO OFFICE AMID RESTRUCTURING
Spiegel announced in August the company would cut its workforce by about 20% amid restructuring efforts.
Lucas Manfredi contributed to this report.