Technology

Snapchat’s Turbulent 2nd Quarter, Wall Street Edition

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It’s no secret that Snapchat isn’t faring that well this year, but who knew it would only get worse? This author did! Well, millions actually did too. From user interface problems to controversial ads and celebrities leaving the platform, 2018 is definitely not Snapchat’s year. Once a rising multimedia platform and secondary vine home, known for its unique features and all, to this huge mess. With all the controversy and dissatisfaction, you’d think Snap Inc. would address the issues, right? Nope.

Now, they are paying for it.

Snapchat, Wall Street Style

Snapchat stocks screen shot Aug 8 2018This morning, Snap Inc., the mother company of Snapchat, is set to drop on Wall Street. For what reason? The report from the day before has proven a drop in stocks by 6 percent, hitting $12.35 per share. A short period of time after Snap’s 2nd Quarter earnings report on Tuesday. Though seen as a better outcome in comparison to its social media platforms Twitter and Facebook, it is still alarming. 

From bleeding green, Snapchat is bleeding RED!

“These Wounds Are Self-Inflicted”

This line from Katy Perry’s underrated song “Self-Inflicted” is apt for Snapchat’s current situation. To understand, let’s go back to November 2017. The popular social media platform announced a redesign. Now, most updates are supposed to make things easier. The 2018 Snapchat update proved otherwise. One of the reasons why Snapchat lost a big chunk of their users is because of the interface problems that came with the update. For one, stories and incoming snaps are set on the same page. The Discovery page also included Featured and Sponsored content. 

Kylie Jenner, a popular reality star and devout Snapchat user, disowned the platform. It’s still her first love though!

Then came the March 2018 controversial poll: “Would you rather punch Chris Brown or slap Rihanna?” This took place in the midst of a Human Rights War, specifically domestic violence. Rihanna’s criticism towards the ad caused a loss in stocks and boosted Instagram’s, the platform she used to respond. 

Other controversies revolve around privacy issues, Snap map privacy concerns, patent infringement, and the lens incident.

In short, they’re losing users. Currently, they’ve lost 3 million of them. 

The Bright Side, That Is Currently Dim

Looking at the not-so-bright side, it’s not that bad. According to Snap Inc. CEO Evan Spiegel, they are now going to redesign the redesign. It’s nice to know he’s aware of the petition to revert back to the classic Snapchat we all knew and still love. 

There is still some positive news for Snapchat stockholders. The company has better sales and is making more money from its users who remain. This increases the average revenue per user, 34% year over year to $1.40. Though this pales in contrast to Facebook’s $25 per user revenue, it still leaves room for improvement. 

At the end of the day, Snapchat is still a business. In order for it to grow, it must change. May it learn from its mistakes and bring back the old Snapchat interface.

 

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About the author

Avei Marie

Total fan-girl with a thirst for news and drama, Nerdy with impulsive awkwardness. Total ambivert

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