Snapchat Lost $2.2 Billion Last Quarter, Stock Drops 23%

Snapchat parent Snap Inc. reported disappointing earnings late Wednesday; and Wall Street punished the stock, pushing it down more than 23% in the first two hours of after market trading.

Falling to $17.65 in after hours trading, Snap stock is now hovering very close to the $17 per share it was priced at for its recent IPO. This was the company's first report since going public. Snap’s total quarterly losses rose to a whopping $2.2 billion last quarter, up from $104 million in the first quarter last year. Most of that cost was a $2 billion one time stock-based compensation cost related to the IPO. Even taking that into account, however, Snap’s losses nearly doubled in the first quarter of this year compared to the same quarter last year.User GrowthOn a positive note, Snapchat added 8 million new users last quarter.