Snapchat with modest growth for the last Quarter
Snap Inc.’s latest quarter results do not look good at all. Investors of the already public company have to worry because Snapchat has grown only 4 percent in the previous quarter – adding 7.3 million users to a total of 173 million.
Analysts predicted an increase to 175.2 million users. These disturbing results indicate that Snapchat has a serious “Instagram” problem. For comparison, Instagram continues to grow at an impressive pace the company added 100 million users between December 2016 and April 2017, or about 20 million users per month.
Users are increasingly using Instagram’s Story feature and since its release in August 2016, it has 250 million active users who apparently migrated from Snapchat to Instagram.
If there is something we have learned about the technology industry is that being the first is not enough to stay first. Snapchat should try to get its users back and start growing faster because it will very soon face problems that unfortunately it will not be able to handle.
As for Snap as a “camera company,” that model hasn’t worked for them either, as only 0.05 percent of its users actually own the Spectacles. It didn’t get much better in the second quarter, with the company only earning $5.4 million from their camera-sunglasses hybrid, that’s down from $8 million sold in the first quarter.
That means that only 41,000 people bought Spectacles, or about 0.02 percent of Snapchat’s users. The founder Evan Spiegel told investors during a conference call that he and Bobby Murphy, Snapchat’s co-founder, wouldn’t be selling any of his shares this year.
“We believe deeply in the long-term success of Snap,” Spiegel said.http://gizbrain.com/2017/08/11/snapchat-modest-growth-q2/https://i1.wp.com/gizbrain.com/wp-content/uploads/2017/08/Snapchat-3D.jpg?fit=1200%2C693https://i1.wp.com/gizbrain.com/wp-content/uploads/2017/08/Snapchat-3D.jpg?fit=210%2C121TECH NEWSInstagram,Snapchat,social networkSnap Inc.'s latest quarter results do not look good at all. Investors of the already public company have to worry because Snapchat has grown only 4 percent in the previous quarter - adding 7.3 million users to a total of 173 million. Analysts predicted an increase to 175.2 million users....Linda MorrisLinda Morrislinda.firstname.lastname@example.orgContributorProfessional Science and Technology student. In my spare time writing about technology news and have fun with the latest gadgets.GizBrain - Your Tech Brain