Snapchat’s latest earnings report doesn’t look good.
According to CNN, Snap Inc., the social media platform’s parent company is steadily losing sales, while it’s user base isn’t where the company had hoped. Snapchat’s most recent quarterly losses reached $443 million, which is four times as much of a loss as this time last year. In the night following news of Snapchat’s loss, the company’s stock fell as much as 25 percent. And with the debate about whether the tech company should have gone public earlier this year, the news leaves many wondering if an IPO was such a good move.
Facebook had previously sought to buy Snapchat, but was turned down by the company in late 2013. Now, some say that may not have been the best choice. Facebook has gone on to make its own version of Snapchat, and passed that on to Instagram, which the social media giant also owns. Instagram Stories, the platform’s version of Snapchat, reached 250 million daily users in June, an increase from April’s reported 200 million.
So what is driving people away from Snapchat? How did going public affect the company? And what does age have to do with how people choose their social media?
Caitlin Plummer, AirTalk apprentice news clerk and resident Snapchat user