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Snap shares drop after strategy chief decides to step down

By Toby |

Snap (SNAP) shares fell as much as 1.8% during pre-market trading after an SEC document revealed that its chief strategy officer, Imran Khan, is leaving the company. The 41-year-old executive played a key role in turning the social media company public in March last year.

Khan, who is also one of the top-paid Snap executives, has not given an exact date of leaving but will stay with the company to ensure a smooth transition.

Snap chief strategy officer imran khan

Khan stated that his departure does not reflect any disputes with the company management.

“There is never a perfect time to say goodbye, but we have a stellar leadership team in place to guide Snap through the next chapter, and I plan to stay on to ensure a very smooth transition,” Khan said.

Khan’s departure follows the stepping down of two other Snap executives in May including finance chief Andrew Vollero and VP Stuart Bowers.

The company has recently been reeling under investor pressure after struggling with falling user count, primarily due to a shift in millennial customer base to rival Facebook (FB).

Social media: User growth, ad revenue trends change the way we approach stocks

In the most recent quarterly results, the company managed to beat analysts’ projections, but guided topline below expectations.

Snap shares have fallen 34% year to date and 63% since IPO.

Snap-Q2-2018-results

 

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