Some experts are saying that what is going on with Snapchat at the moment resembles a lot what happened to Twitter back in 2013. That was the year when the latter fell apart because of a really slow growth. Competition was tough and Twitter was heavily borrowing features from Facebook. Also, users could not find the content they were looking for because of the platform’s reversed chronological feed. As the problems continued, its share price dropped 18 per cent.
Snapchat facing problems
On Wednesday, the same thing happened to Snapchat. The company is also facing serious competition from Facebook, therefore leading to a slowed down growth. Its share price fell about 24 per cent, and problems keep on coming. If we are to compare the two journeys, Snapchat should learn from its mistakes and get back on track. Twitter did it, mainly because if finally let go of its unfiltered feed. Users can now see the content they are interested in at the top of the feed. This is thanks to an algorithmically ordered one. So, in the first quarter of 2017, Twitter registered a 9 million user growth.
On Wednesday, Snap announced that it gained about 8 million users this quarter. The problem is that this is not much of a difference from the previous numbers, during the time when Instagram copied Snapchat’s stories. CEO Evan Spiegel is known to be against anything Facebook does. The Stories feature with the disappearing messages was inspired by Facebook’s profile timeline and messages which do not disappear. However, it seems like users are not happy with the unsorted Stories feature. Their main complaint is that usually, the stories of their friends get lost among those of celebrities and other, not so familiar people.
The company’s plan
Still, during Wednesday’s earnings call, Evan Spiegel seemed happy with Snap’s strategy and did not seem to want to make any change. He simply admitted that when a company is so creative it must accept that it will get copied. He jokingly compared Yahoo to Google, just because both have a search box. However, experts think that what Spiegel does, ignoring the obvious threat from Facebook, might be the end of Snap. Also, the investors will have to accept this, as they have no opinion in the matter.
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