In earnings news, Snap reported its slowest quarterly sales growth ever and joining us now for a closer look. As Kurt Wagner Bloomberg Technology report him, So, Snap is not exactly a bill Weather and it's probably not big enough for us to feature it, but we were doing so because we want to get the read through Kurt, for the industry generally advertising, and particularly with the companies like
Meta and Google trading down in after hours. And let me just get our audience the latest down down for Snap after the earnings. How much of a read through will there be for companies like Meta and Google. Yeah, these companies that all you know do digital advertising, they tend to move in a pack, right and and so that's why you're seeing Snap report poor earnings and these other companies are seeing to sell off as well. So that happened to be first this quarter in terms of
reporting earnings. As you mentioned, it wasn't great. I do think that has some uh kind of preparation or that prepares us somewhat for for the facebooks and Google's of the world to go. I will say though Snap has been a little bit more dramatic in terms of the impact of some of the advertising related changes like things to Apple's iOS. Feels like that's hit Snap maybe a little harder than some some other companies. So I'm not necessarily sure if this is exactly going to correlate with
those others. But again, they tend to move directionally together, and so that's why you're seeing that sell off cut. The chap price actually from thirteen months ago when it was at the peak is down. Okay, that's one thing which doesn't inspire confidence. The number two things, what's the point of this company? Well, uh, it's very popular with young people and it's a message Well it's it's a user base is still growing, so I would I guess
I would push back slightly. Now you could argue whether or not, uh it's you know, necessarily has the same utility as as some of the other messaging services out there, but I mean it's user based. Did grow. They added fifty seven million new users in the past a year, and so when you think about that, there are still a lot of people who want to use this product, who use it to message or to get you know, entertaining content. What Snap needs to figure out is how
to make money from those people. Right, It's clearly adding people. It's not making money from them as well as it needs to. Well, it may have lost a fair bit of influence to TikTok. I think that's right. I I you know, I feel like we're talking a lot about the ad industry hurting Snap. I don't think we're talking quite enough about the impact of TikTok, right, I mean, to Mark Zuckerberg's credit, he has said that TikTok has
been a huge hit on Facebook and it's growth. I feel like we haven't heard quite as much of that from Snap. But you know, they're playing in the same sandbox, if you will. They're going after a lot of the same users. So I imagine that TikTok is having quite an impact on on snaps user based and growth as well. So I think we should. You know, I thought about it was when this market, this company did come to market that it's sure it's it may have a big user base and did have a huge user base. Um,
but the thing is it's the wrong demographic. They don't have the money, right. That's always been the knock on on young users. Right. On the one hand, everybody wants teens and young adults on their platform, because that's how you build those lifelong relationships, right, you get people to to fall in love with your product when they're young. On the other hand, those aren't the people with a lot of buying and spending power, as you just pointed out.
And I think that's always sort of been an issue with Snap, not only uh, you know, because their users might not have the disposable income, but they haven't been great at what are called direct response ads either, which are kind of those really precisely targeted ads, like you know, selling you a pair of shoes right then and there. Right Those are the types of things that maybe young people might be more willing to do, but you have to have the ad system set up to do that,
and I don't think Snap ever really quite got there. Yeah, I guess it's not the right corollary. But you know, there's a lot of films that are made for teenagers, but then they do pay the the you know, they buy the ticket and go in. It's not the same as advertising. Kurt, out of time, but thanks very much for being with us. Kurt Wagner and Bloomberg Technology Report