Snap Inc. is facing concerns since their stock sank by 21% after reporting first-quarter sales and daily active users that missed estimates.
Many are guessing why the stocks are falling so dramatically, with one major lead: the ever so hated re-design. With the re-design being not only dramatically different and filled with advertisements and bugs, users have very much voiced their concerns through various social media platforms.
There are current plans for a new re-design, that will hopefully create a happy medium between the users, and Snap Inc.
The CEO has announced in an interview, “Our redesign created some headwinds in our revenue this quarter by disrupting user behavior and creating some apprehension among our advertising partners,” said CEO and co-founder Evan Spiegel to investors on a conference late Tuesday. “We believe that our current path forward will address both issues, and that our advertising business has benefited and will continue to benefit from the tough decisions we make in order to create and maintain a positive and healthy environment for our community over the long term.”
Multiple firms published bearish notes and knocked down their price targets for Snap’s stock. Some of them were slamming the companies lack of consideration of the users and advertisers concerns, including notes like: “[The] most recent app redesign seems to have been ‘last straw’ for some advertisers, who are now unlikely to give platform another chance absent significant daily active user re-acceleration, and there’s no catalyst in sight.”
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