Wednesday, November 08, 2017

Snap Will Overhaul Its App Just Nine Months After Its IPO - Bloomberg

Probably not a great day ahead for Snap shareholders

"While ad prices fell as part of a transition in the company’s sales system, the larger problem, Snap said, is that people complain they don’t know how to use the Snapchat mobile-messaging app. Once part of the app’s allure for teens, the company now considers its mystery a hurdle to future growth. So Snapchat is being redesigned.

“There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don’t yet know how the behavior of our community will change when they begin to use our updated application,” Chief Executive Officer Evan Spiegel said Tuesday in his prepared remarks to investors. “We’re willing to take that risk for what we believe are substantial long-term benefits to our business.”"
Snap Will Overhaul Its App Just Nine Months After Its IPO - Bloomberg
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