SNAPPED

Snapchat Bombs in Its First Public Quarter

Snapchat's parent company Snap lost $2.2 billion during the first quarter of 2017, according to public earnings reports released Wednesday. The earnings report, the company's first since going public in March, show Snap lagging far below the gains the investors initially projected. Much of the $2.2 billion loss comes from $2 billion in one-time compensation costs. The company reportedly distributed stock generously to its upper management in advance of Snap's IPO, giving CEO Evan Spiegal a share package valued at $750 million, in addition to $5.5 billion in shares he already owned. Since releasing its earnings report on Wednesday, Snap's stock fell over 20 percent, devaluing it to nearly its original price. The earnings report also showed slowing user growth, which coincided with the launch of a Snapchat-like product by rival social media platform Instagram.