Snapchat just can’t catch a break at the moment, though to
be fair the problem seems to be largely of their own making. Ever since the
company decided to implement a major redesign of their flagship app the public’s
opinion has been swayed somewhat toward the negative as users have become
frustrated with the company’s apparent refusal to reverse the “annoying”
changes. This is despite the fact that by the time February came around more
than 1.2 million users had signed a petition demanding that Snapchat revert to
their previous design.
Kylie Jenner, controversial as her fame may be in the eyes
of the wider public, was once the app’s largest-drawing account. When she took
to Twitter back in February to ask, “Does anyone else not open Snapchat
anymore?”, it signalled dire times for the company.
In fairness Snap Inc. has been attempting to resolve the issue with yet more recent redesigns, but these have failed to win over the user base. Now these dire times have been reflected in the company’s finances, as Snap Inc.’s share price dropped by a massive 22% in early trading. A combination of the aforementioned user backlash, along with the company’s ongoing struggle to compete with the global giant that is Facebook and the ever-popular Instagram, are attributed with causing Snapchat’s financial woes.
Growth is proving to be a major hurdle for the app; in fact Snapchat also issued a growth warning which indicated that due to the fallout surrounding the redesign they were expecting a substantial slowdown in revenue throughout the current quarter. As you may expect this admission wo0rried analysts and investors alike causing the share price to suffer as a result.
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| Img: vpnsrus.com |
In fairness Snap Inc. has been attempting to resolve the issue with yet more recent redesigns, but these have failed to win over the user base. Now these dire times have been reflected in the company’s finances, as Snap Inc.’s share price dropped by a massive 22% in early trading. A combination of the aforementioned user backlash, along with the company’s ongoing struggle to compete with the global giant that is Facebook and the ever-popular Instagram, are attributed with causing Snapchat’s financial woes.
Growth is proving to be a major hurdle for the app; in fact Snapchat also issued a growth warning which indicated that due to the fallout surrounding the redesign they were expecting a substantial slowdown in revenue throughout the current quarter. As you may expect this admission wo0rried analysts and investors alike causing the share price to suffer as a result.
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