Is Snapchat dead?

Is Snapchat dead?

We have seen the biggest drop in Snapchat stocks after the first quarter of life. They reported a loss of $2.21 Billion; it means 4x more than the total revenue of the seven-years history of the company. Is this just a game of wall street brokers or is it a business reason behind it?

Jeremy Owens tries to explain in his last article the reasons behind it. He supports the drop is based on the stock-based compensation to employees whose options vested at IPO time, which accounted for nearly $2 billion of that total.


The company reported 166 million daily active users, up from 158 million in the previous quarter and 122 million in the year-earlier period. However, average revenue per user was 90 cents, a decrease from $1.05 in the last quarter.

Is Facebook trying to eliminate Snapchap from the competition? Instagram is making big progress in daily users and increasing functionalities; mainly the time-limited pictures and videos.

Do you think it is room for another big Social Networking Site after Facebook?


JJDelgado

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JJ Delgado

9-figure Digital Businesses Maker based on technology (Web2, Web3, AI, and noCode) | General Manager MOVE Estrella Galicia Digital & exAmazon

7 年

We see how Snapchat stock price is going down and down. Are we living the dead of a Social Networking Site?

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Miguel A. Ceballos

Marketing Inmobiliario | Marketing de Servicios Profesionales | Captación de Leads | Estrategia de Contenidos

7 年

I have always thought Snapchat is overrated. Instagram stories already have more active users than Snapchat stories. It will not dissapear, but it will be like a Twitter for kids, very popular but not a profitable business.

Marieke Pijler

Schrap Onderscheidend, word Onvergelijkbaar? ?? Positioning Strategist x Business Catalyst. Investeerder en auteur. ??Q1 2025

7 年

Their audience is one of a kind and offers great opportunities for advertising campaigns that want to reach the young(er) generations. Even though Instagram and Facebook are adopting Snap-like features, I truly believe that Snap has a high potential due to their young community. In some way its a very special community on its own.

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Christoph Teufel

Serial Entrepreneur - Angel Investor - Mentor - Interim Management

7 年

NO Snapchat isn't

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