Yahoo Finance anchors discuss Snap stock under pressure after a report hinted that the company could cut 20% of its workforce and news that two executives at the company have been poached by Netflix.
BRAD SMITH: Let's talk about another stock that we're tracking here premarket that is actually moving lower this morning. It's Snap, the brand of Ghostface Chillah. This morning, moving lower by-- after reports from The Verge that the social media giant is planning to lay off 20% of its workforce, effective today.
Now, on the heels of this, two Snap advertising executives have exited the company and are heading to Netflix. Their shares moving lower, at least premarket right now, by about 9%. We'll see exactly where trading opens up here on the day for Snap. But again, a company that is well off of where it even went public at years ago, back in 2017.
And then we think about what has affected the brand to this point. Sure, there have been changes that have been made within the Apple privacy settings that have impacted other advertising models, such as a Snap, such as a Twitter, even a Facebook. And so all of those things considered, all of those brands are going to have to figure out a way to drive conversions.
And they've tried to do that through shopability as well because that's the other major kind of digital body language tracking capability that would be layered into a social media experience. If you had enough people selling items or enough people-- or, excuse me, merchants that were looking to sell product through one of your social media platforms, then you would, in essence, be able to take so much of that data and then layer it in and build up this profile, this potential customer profile of your own without having to rely on all of the different tracking settings and mechanisms that you had built your business on for so many years, too.
BRIAN SOZZI: Yeah. And it should be noted that we reached out to Snap for comment on these layoffs. They did not return my request for comment. All gloves are off for me today, Brad. I've just had enough with a lot of executives. I think this is a trash job by Evan Spiegel, founder and CEO of Snapchat, another leader that just had this grand vision of what this company should be, trying to expand into various areas.
Are they a camera company? Are they a social media company? Are they doing this? Are they doing now that? The bottom line is this, now, growth has completely slowed for Snap. When we covered their earnings a couple of weeks ago, that stock finished down close to 40% the following day.
Bad user growth. They're losing money, and all because of Evan Spiegel and his vision not coming to fruition. And now you have employees that are probably getting ready to go on LinkedIn and just say they're looking for a new job all because of his efforts, or lack thereof.
And he's a billionaire. He's doing great. You know who's not doing good? The employees of this company, right now, at this very point in time.
BRAD SMITH: Here are the employees that it's going to impact the most, as of right now, based on this reporting from Alex Heath over at The Verge-- the team that is actually working on ways for developers to be able to kind of build these mini-apps and games within Snapchat, they're going to be affected. You're also going to see Zenly within Snap, which they acquired back in 2017.
They're going to be deeply impacted. And then also the hardware division, which-- why was hardware even a thing that Snapchat tried to [INAUDIBLE].
BRIAN SOZZI: Bad management. Bad management. That is the tie that I would say ties all those things together, Brad. Everything you mentioned there, it is bad management. And you just get a sense of a company that will continue to struggle well into next year.