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Snapchat Loses $2.2 Billion Dollars In Q1 2017

This reminds me of that Nursery Rhyme "London Bridge is Falling Down".

Mark Zuckerberg decided to turn the table on Snapchat after they refused his buyout offer and the Snapchatifying strategy seems to be working. Zuckerberg owned Whatsapp, Instagram and Facebook have been ripping off Snapchat for a while. Last August, Instagram unveiled its stories feature, which functions in a very similar way to Snapchat. Earlier this year, Facebook Messenger also added the same feature.

Many people are dumping Snapchat for Instagram Stories.

This loss is clearly affecting Snapchat — on Wednesday Snapchat reported a massive a $2.2 billion loss in Q1. But it wasn’t just earnings that took a hit, the app’s user growth was the slowest it’s been in two years, reaching 166 million users, while Instagram boasts a comfortable 700 million users.

Inspite of this, Snapchat co-founder Evan Spiegel doesn’t seem to be too concerned by Facebook and Instagram’s encroachments.

He threw a shade at them in a statement, saying “if you want to be a creative company, you have got to be comfortable with and enjoy the fact that people copy your products if you make great stuff. Just because Yahoo! has a search box doesn’t mean they’re Google.”

The market wasn’t as easily convinced, however, with shares of Snap Inc., Snapchat’s parent company, dropping 24 percent after the announcement.

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Snapchat Loses $2.2 Billion Dollars In Q1 2017 Snapchat Loses $2.2 Billion Dollars In Q1 2017 Reviewed by Michael Ajah on Thursday, May 11, 2017 Rating: 5

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