Shares in Snap Inc. plunged more than 25% as I write on this Friday US market, after releasing the Q3 results, one of its slowest-ever quarter for revenue growth. Moreover, adding salt to the wound, It did not provide revenue or earnings guidance for the Q4. In other words, it has no confidence on how it can perform given this stage of slowing growth with recession looming around the corner.
With this plunge, it has dropped more than 89% from its peak in Sep 2021. What a drop from its glorious days! It has currently reached the stock price level of 2020 during the covid19-drop.
It has also affected Meta, Pinterest share prices.
What is next ?
*With its previous announcement of restructuring plan that included laying off 20% of its workforce, could there be more layoffs to come?
*In addition to macroeconomic challenges, it continues to face growing competition from TikTok which has been gaining market share in social medium landscape
*Announced changes by Apple's app tracking policies have also impacted its ad sales.
*It has tried to diversify its revenue incomes to be less dependent on advertising dollars. However, being a social media platform depending on subscribers' activities and interaction, how much can it diversify remains to be seen.
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Source:Axios Media Inc
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