Photo-messaging app Snapchat’s parent company Snap shares fell to an all-time low after an analyst commented that the company may run out of cash by 2020.
Snap shares tumbled more than six per cent on Tuesday after a Wall Street analyst said the Snapchat parent was “in danger of running out of cash by 2020”, NYpost.com reported.
Last week, Snap CEO and Co-Founder Evan Spiegel told employees in a 15-page memo that the company is gunning for “full-year profitability” in 2019.
Instead, Snap is poised to fall “woefully short” of that goal, losing a projected $1.5 billion next year, according to Michael Nathanson of research firm MoffettNathanson.
Snap is not only “running out of money” but also lacks “options to rectify its cash burn problem,” Nathanson was quoted as saying.
After dropping as much as 8.6 per cent to bottom out at an all-time low of $6.84 per share, the social media company’s stock recovered to close at $7 — 59 per cent below Snap’s IPO price of $17 per share in March 2017.
Facebook has enabled advertisers to promote anti-vaccine content to nearly nine lakh people interested in “vaccine controversies”, the media reported.
The social networking giant is already facing pressure to stop promoting anti-vaccine propaganda to users amid global concern over vaccine hesitancy and a measles outbreak in the Pacific northwest.
Advertisers pay to reach groups of people on Facebook which include those interested in “Dr Tenpenny on Vaccines”, which refers to anti-vaccine activist Sherri Tenpenny, and “informed consent”, which is language that anti-vaccine propagandists have adopted to fight vaccination laws, The Guardian reported on Friday.
On Thursday, California congressman Adam Schiff, the chair of the House Intelligence Committee, in letters to Mark Zuckerberg and Google CEO Sundar Pichai, urged them to take more responsibility for health-related misinformation on their platforms.
“The algorithms which power these services are not designed to distinguish quality information from misinformation or misleading information, and the consequences of that are particularly troubling for public health issues,” Schiff wrote.
“I am concerned by the report that Facebook accepts paid advertising that contains deliberate misinformation about vaccines,” he added.
In 2017, ProPublica, a US-based non-profit organisation, revealed that the platform included targeting categories for people interested in a number of anti-Semitic phrases, such as “How to burn Jews” or “Jew hater”.
While the anti-Semitic categories found by ProPublica were automatically generated and were too small to run effective ad campaigns by themselves, the “vaccine controversies” category contains nearly nine lakh people, and “informed consent” from about 340,000. The Tenpenny category only includes 720 people, which is too few to run a campaign.
Facebook declined to comment on the ad targeting categories, but said it was looking into the issue, The Guardian reported.