Snapchat, one of the most popular applications in the world, fell out of favor for a while with the Stories feature coming to Instagram. Although the platform, which has been on the rise recently, wants to increase the experience of its users with the innovations it works on, it is facing difficult economic times.
Snap shares fell more than 25 percent
Social media platform Snapchat failed to meet revenue expectations. This leads to greater destruction for the company. So much so that Snap is having problems with its advertisers because of this situation. The stock market is not good at all.
Snap’s negative economic trend creates a domino effect. Some agencies that advertise to the company are cutting back on advertising spending, saying they are facing rising costs, supply chain disruptions and labor shortages.
Unable to earn the income it expects from advertising deals, Snap also loses value in the stock market. Snap shares fell more than 25 percent in after-hours trading in New York. The company missed Wall Street expectations for the three months to the end of June. This deviation equates to $1.11 billion.
Giant companies have stopped hiring due to economic crisis expectations. Snap, the parent company of Snapchat, is also participating in this. On the other hand, when it comes to the platform, the company is smiling. The number of daily active users on Snapchat surpassed estimates at the end of June to reach 347 million.
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