Snap Inc.'s Shares Fall Below Initial IPO
Snap Inc., the company that owns social media platform Snapchat, continues to experience significant drops in their shares. This is a frightening thing to see, especially after their recent IPO. As of this writing, their share price is at $12.23 (the initial IPO was $13).
The simple fact is that Snapchat does not have any meaningful way to generate revenue. While Snap Inc. has unveiled new additions to its core platform and has started limited sales of sunglass/camera product and now the new "Snap Map" feature, their core service is the self-destructive image messaging function. In a recent study, it was found that 66% of all users of the Snapchat app exclusively use the messaging function and not the Live Stories, or Discover.
Continued Problems in the Future
This study raises significant concerns for the platform and the company overall. As of the writing of this post, Snap Inc. has not unveiled any meaningful advertising solutions within the places where a majority of its users are at on the platform. This means that the billions of dollars in losses are unavoidable in the upcoming quarters.
What Does This Mean for Your Business's Marketing?
Many business owners and marketing managers ask if they should invest the time into Snapchat. While there is no blanket statement for all businesses, it's pretty safe to say that I'd be wary of spending too much time on the Snapchat platform. As for businesses that have not utilized Snapchat yet, there is no good reason to start now.