It has happened for the first time that the photo sharing platform of Snap Inc., Snapchat is set to lose customers in the US. There have been short term measures like gaming introduction in the app, yet it turns out that this effort is futile. It has been projected by EMarketer that in the year 2019, the projected users for Snapchat would be 77.5 million, which is 2.8% lesser than last year.
The primary research results have been that the users are upset with the new re-design of the app. This unhappiness of the users can potentially lead to a fall in the figures for Snapchat. The figures for Snapchat are projected to fall even further in 2020. Snapchat retaliated by saying that the tools used for reaching these predictions were flawed. They also stressed on the recent developments made in the application. The projections made by Snap for the year 2019, were reportedly also ignored.
EMarketer said that the app suffered severe setbacks like an executive turnover and Instagram mimicking Snapchat to lure away customers. There was almost a 70% fall in the share prices compared to the IPO made in 2017.Investors are now skeptical if the company can stand in the middle of this cut throat competition.
Showmik Poddar from EMarketer says that there was a severe backlash from the users after the stories and chats were intertwined to cause confusion. This backlash forced the application to withdraw its changes for a few months. The CFO, Lara Sweet said that the application is not facing any discomfort and, a fall in the users was not anticipated. This new forecast would silence the optimists in Wall Street investors who expect that Snapchat is back on its feet. The share prices were down by 2.5% to a figure of $12.04 on Wednesday at New York.