Snapchat owner Snap Inc. Its stock, which reached the market of $ 17 a share (and reached its highest value of $ 29.44) during its initial public offering in March 2017, is in the ditch – the highest value of $ 6, 54 so far in 2019. still bleed money. A big update to the app last year was hated by so many users, Snap was forced to issue a new redesign design.
According to Reuters, the company's sources say Snap is now considering "what was once unthinkable" – namely, switching to its format, so public snaps will last much longer before being deleted that great change) or just become permanent (much bigger change). It is also considering switching, which would "reveal the identity" of users making publications.
Although the changes will push more Snapchat content to more eyeballs, the company is not about to give up entirely self-erasing posts. Reuters writes that the changes that Snap is considering will only apply to publications submitted to Snapchat's "Our History" episode (public section where users can post their posts) and users will be able to delete them manually: 19659006] Only Snapchat's photo and video content shared with "Our Story" that publicly shares the photos of a wider audience rather than just the user's friends will be affected and users will continue to have the ability to delete these stories, the man said. has already prolonged the shelf life of public stories, but making them even longer or revealing more to the users who create them would be a further departure from Snapchat's distinctive features.
One source further told Reuters that Snap is currently considering how these changes will work from privacy, technical and legal angles. The news agency also writes that the proposed changes appear to be partly motivated by Snap's partnerships with "news platforms" (ie, services that see a trend for media companies). They are designed to make it easier for third parties to re-circulate Snapchat's content beyond the application, Reuters writes that sources say that "some partners have said that the disappearance and anonymity of public stories makes them hard to work." In other words, Snap would really like it if more people embed its content on blogs, news, other social networks, and more, which would provide new advertising opportunities. Theoretically, they could also position Snap to compete better with Twitter and Facebook, both of which are often the starting point for big news stories (just one example – Covington's headache video). As Reuters reports, public stories about Snapchat have already been 90 days since 30 when the feature was originally introduced.
Of course, these changes will take Snapchat even further than its original concept, and risk breaking some of its users who are disgraceful. On the other hand, a sacred cow, this company burns a lot of money . In the third quarter of 2018, it reported a negative free cash flow of $ 158 million, which largely looks good due to the negative free cash flow in the second quarter of 2018, from $ 234 million. TechCrunch reported that Snap had only $ 1.4 billion in assets at the end of this quarter, and with "MoffetNathanson analyst, estimated to lose only $ 1.5 billion in 2019, Snapchat could run out its money before it is expected to break even in 2020 or 2021. This leaves a strong need for new sources of revenue.
"We do not see Snap reaching profitability in the near future unless there are significant cost reductions," writes Michael Nathanson of MoffetNathanson for Bloomberg. "In 2019 Snap will have to take some steps to ensure that there is liquidity to stay in business."
Snapchat also loses users. In the second quarter of 2018, he recorded a loss of three million people a day, and then lost another two million in the third quarter of 2018. A study in October 2018 found that Instagram might outperform Snapchat in monthly use among teenagers, and many of them "prefer brands to contact them for new products" compared to the latter.