Snap: Can Evan Spiegel straighten the ship in 2018?



Can Evan Spiegel – and fracture (SNAP) – make 2018 a year to remember?

That is the question that an article from the time of Bloomberg, Sarah Frier, about the Next 50 company of the Barron, thinks. Frier got a look behind the scenes of a Snap, who had trouble taking advantage of what was a difficult year, in a number of ways, for Facebook (FB) and other social media companies.


From the story of Frier: This should be Mirror's moment. Facebook is in the middle of a series of privacy-related scandals. twitter (TWTR) and[[[[ Alphabet[GOOGLE] YouTube, Snapchat & # 39; s other big competitors, seem to have been flooded by a combination of Russian bots, ISIS recruiters and / or conspiracy theorists. In this context, Snapchat seems to be a well-positioned alternative. There is no fake news and the company's emphasis on the disappearance of content means that it stores much less data than its competitors.

And yet the daily use has begun to decline. At the end of last year Spiegel Snapchat designed to let people spend more time on Snapchat. Users hated it. In early August, Snap reported that its audience had dropped from 191 million daily users in the first quarter to 188 million in the second. This is alarming because Facebook, which is more than seven times larger, is still growing. Instagram stories, in fact a copy of Snapchat, has more than 400 million daily users.

Investors have seen Snap as a smaller, non-profitable Facebook instead of a new idea that must be judged on its own merits. Spiegel said that these problems were partly caused by a lack of communication, which caused confusion inside and outside the company. "If you do not share who you are with people, you can not be angry if they have misconceptions," he says.

The shares of Snap have dropped by more than 20% in 2018, after the S & P 500.

E-mail David Marino-Nachison on [email protected] Follow him @marinonachison and follow Barron's following @barronsnext.


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