Millennial investors in Snap Inc. are taking a big hit this week in response to the $2.2 billion net loss the company announced in their quarterly report on Thursday morning.
Traders of Snap Inc, the parent company that oversees the popular social networking app Snapchat, saw big losses on Thursday morning. The stock dropped nearly 20 percent in response to the company’s first quarterly report following their IPO.
Snap shares got destroyed in the aftermath of the social network’s first earnings report, likely hitting younger investors the most, according to data from Wall Street brokers.
When the parent of popular disappearing messaging app Snapchat began trading March 2, online trading broker TD Ameritrade said it gained 6,400 new clients with an average age of 38.
According to CNBC, Snap Inc. traders are nearly a decade younger than the average age of those trading retail equities.
That’s nearly a decade younger than the average age of retail clients trading Snap that day, TD said.
Snap shares dropped nearly 20 percent Thursday morning after its first quarterly report as a public company on Wednesday showed net losses of $2.2 billion, due to $2 billion in expenses for stock-based compensation.
You can read the entirety of this story at CNBC.
Tom Ciccotta is a libertarian who writes about economics and higher education for Breitbart News. You can follow him on Twitter @tciccotta or email him at firstname.lastname@example.org