Evan Spiegel Net Worth After Snapchat Stock Continues To Fall

Snap Inc., creator of the app Snapchat and self-proclaimed camera company, went public in March debuting at $17 a share. The company announced a $2.2 billion net loss with its first quarter earnings report in May that resulted in a sharp dip in share price.

After a brief month-long recovery the company saw shares drop further and on Monday stocks dipper to an all-time low and closing at $14.08 per share. The company has faced fierce competition from Instagram, with the introduction of “Stories” and other similar features to those of Snapchat. The competitive features and slowed new user growth may be what’s causing the declining confidence investors have in the company.

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The app that allows users to send photos to friends or post the photos or videos to a “story” that disappear after a short period of time is one of the most used smartphone apps in the world. Snap Inc. founder and Chief Executive Officer, Evan Spiegel, started the company in 2011 with one of his fraternity brothers from Stanford University, Bobby Murphy. He left the university before finishing his degree to focus on the app.

Spiegel, 27, is currently estimated to be worth about $3.2 billion and dropping, according to Forbes. He and his co-founder each own 18 percent of the company but they have voting shares that give them control over the board, reported Forbes. Spiegel recently tied the knot with former Victoria’s Secret model Miranda Kerr, the two share a $12 million mansion in Los Angeles that formerly belonged to actor Harrison Ford.

Mark Zuckerberg, Facebook co-founder and CEO, offered the pair $3 billion for the company in 2013 that they turned down. Zuckerberg’s company Facebook, owner of Instagram, has since gone on to copy the disappearing photo approach Snap created in 2011. Snap’s shares have been particularly vulnerable to good news from Facebook. When Facebook announced that Instagram Stories had 250 million daily active users, Snap shares took a dive.

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Snap released “Spectacles” in November and has since made them available online from the Spectacles site as well as on Amazon. The glasses allow wearers to capture video from eye-level point of view and post it to their Snapchat stories. The new technology was part of Snap Inc’s pivot to the identity if “camera company.”

In addition to competition from Instagram and Facebook, Snap has faced legal issues. A lawsuit against Snap Inc. from a former employee alleged that Spiegel said the Snapchat app was only for rich people and that he did not wish to expand into “poor” countries like India. In addition to alleging such comments, the lawsuit said that Snap Inc. lied about user statistics to investors ahead of its debut on the New York Stock Exchange.

Snap Inc. will announce its second quarter earnings on August 10.