The shares of Snap rose after reaching an all-time low during the previous week, shortly after its announcement of its plans to replace its finance chief with a veteran from Amazon.
The parent company of Snapchat was bumped up by over 4 percent after markets opened after the announcement that Tim Stone, who oversaw the integration of Amazon of the $13.7bn Whole Foods acquisition of the retail giant, would take the place of Andrew Vollero as the chief financial officer.
Vollero was the first ever finance boss of Snap and the man who was responsible for helping the company transition from a tech startup to a public firm in March 2017. He will be replaced by Stone on the 15th of May.
Currently, Stone is the Vice President of Finance at Amazon Inc. He led the brick and mortar shops arm of the company from August 2017 until February 2018 and has been working for the company since May 2010 across several roles including the overseeing of the financial planning across Amazon Devices, eBooks, and Amazon Web Services.
On Monday, a company email from Evan Spiegel, the co-founder and chief executive of Snap, was leaked online. The email read: “I am deeply grateful for Drew and his many contributions to the growth of Snap. He has done an amazing job as Snap’s first CFO, building a strong team and helping to guide us through our transition to becoming a public company.
“The discipline that he has brought to our business will serve us well into the future.”
The increase in the shares of Snap will be a gentle relief for Evan Spiegel after he saw the shares of the company take a nosedive during the past week after Snap reported stunted user growth and disappointing revenues. The daily users of Snapchat increased by only 4 million during the first three months of this year, as compared to a rise of 9 million during the last quarter.
Upon the announcement, Snap dropped by over n 20 percent, the company’s lowest point since the firm went public. The poor growth was largely down to the redesign of the app, an attempt to make the image-sharing app even more profitable that has alienated its audience.
Even the re-launch last April of Snap’s Spectacles, a series of camera-fitted sunglasses that record ten-second videos have failed to ignite investment.