Missed revenue, slowing user growth and an earnings-per-share loss so big some financial journalists like Fusion's Felix Salmon said they briefly thought the number was a typo. Revenue was also lower than expected with the company bringing in $149.6 million in the quarter instead of the $159 million that analysts expected. Its user numbers also came in light.
Average revenue per user was 90 cents in the first quarter, Snap said, up from 33 cents the same quarter a year earlier but below the $1.05 per user in the fourth quarter of 2016.
In after-hours trading toward the end of the call, Snap stock fell to $17.46 per share, more than 24 percent from Wednesday's close of $22.98.
On Facebook, Spiegel said you have to expect people are going to copy you.
With the bad news, Snap's stock is TANKING. Analysts had been looking for faster growth of at least 40 percent, as an indication that Snapchat can retain its unique, young base of users.
In recent months, Facebook has launched Facebook Stories, a near-identical clone of Snapchat's most popular feature, also called Stories. The 52 week high Snap Chat's shares have peaked at is 29.44 whilst the 52 week low for the company's shares is 18.16. Unlike Facebook, Twitter or Instagram, Snapchat isn't connecting networks of people. Facebook as a whole dwarfs Snapchat eight times over with 1.8 million users.
All the copying appears to be paying off for Facebook. The company recently said Instagram Stories alone had reached 200 million daily active users.
But Facebook - which once offered $3bn to buy the business - has upped the ante by offering features similar to Snapchat on its platforms including Instagram and WhatsApp. But, he added, "just because Yahoo has a search box, it doesn't mean they're Google". The move could potentially make the service more intuitive to new users.
While Snap is still basically a venture-stage company, which makes it riskier than its more established peers, the firm thinks Snap's "audience and engagement represent a unique asset that will benefit from growth and diversification of internet usage and advertiser adoption as both mature".
With its first earnings results, Snapchat risks suffering the same fate as its social media rivals.
Facebook eventually recovered; Twitter is still fighting to refute the Wall Street narrative.