Categories: Technology

That’s why Snapchat shares are plummeting

The photo app Snapchat continues to attract new users, but the advertising business has not taken off. Developer Snap internally expects a revenue decline of between two and ten percent for the current quarter.

Snap also recently dipped deep into the red. All in all, there was a loss of about $288.5 million in the last quarter, after a profit of $22.5 million a year earlier. Sales remained at $1.3 billion, Snap announced after the US market closed on Tuesday. The stock fell about 14 percent in aftermarket trading.

The number of Snapchat users rose from 363 million three months earlier to 375 million.

Founder and boss Evan Spiegel referred to the weakening economy, which is slowing down the online advertising market. Snapchat continues to tease Apple’s iPhone privacy policy. App developers like Snap need to ask users for permission if they want to track their activity across apps and websites to personalize ads. Many users reject this, which has made advertising platforms, including Snapchat and Facebook, less efficient. (sda/dpa)

Source: Watson

Share
Published by
Ella

Recent Posts

Terror suspect Chechen ‘hanged himself’ in Russian custody Egyptian President al-Sisi has been sworn in for a third term

On the same day of the terrorist attack on the Krokus City Hall in Moscow,…

1 year ago

Locals demand tourist tax for Tenerife: “Like a cancer consuming the island”

class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…

1 year ago

Agreement reached: this is how much Tuchel will receive for his departure from Bayern

class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…

1 year ago

Worst earthquake in 25 years in Taiwan +++ Number of deaths increased Is Russia running out of tanks? Now ‘Chinese coffins’ are used

At least seven people have been killed and 57 injured in severe earthquakes in the…

1 year ago

Now the moon should also have its own time (and its own clocks). These 11 photos and videos show just how intense the Taiwan earthquake was

The American space agency NASA would establish a uniform lunar time on behalf of the…

1 year ago

This is how the Swiss experienced the earthquake in Taiwan: “I saw a crack in the wall”

class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…

1 year ago