Snap Inc. was reeling on Friday morning after posting its second straight underwhelming quarterly report, and nobody is feeling the pain more than CEO Evan Spiegel and Chief Tech Officer Bobby Murphy.
Shares of Snap opened about 13 percent lower on Friday, trading near its all-time low of $11.90 a share. Spiegel and Murphy each owned nearly 211 million shares of the company when it went public back in March — meaning they’ve both taken about a $380 million hit (on paper) this morning.
Unfortunately for Spiegel, he might have to cut his three-week European bro cruise down to a mere two-week trip next year.
Altogether, it’s been a rough few months for shareholders since the company first began trading on the New York Stock Exchange earlier this year. Snap quickly jumped from $17 to $24, but lagging user growth and lackluster revenue have scared off investors — driving its shares down 50 percent in the process.
With Snap’s lockup period set to end on Monday, allowing early investors and company employees to cash out on their shares, Wall Street had already been wary of Snapchat’s parent company before reporting its poor quarter.
Spiegel looked to alleviate some of those fears on Snap’s conference call on Thursday. “Bobby and I will not be selling any of our shares this year,” said Spiegel. He went on to say the two execs “believe deeply in the long-term success of Snap.”
Wall Street, on the other hand, doesn’t appear to have the same confidence.