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Market News

Snap content head quits amid turnaround efforts

A lot has been happening at Snap (SNAP) these days, at a time when the social media app is struggling to tackle the falling user base and weakening market value. Of late, the growing popularity of Discover, the company’s short-format video sharing service, has added to its recovery hopes. Ironically, Nick Bell, the man who […]

November 12, 2018 2 min read
Market News

A lot has been happening at Snap (SNAP) these days, at a time when the social media app is struggling to tackle the falling user base and weakening market value. Of late, the growing popularity of Discover, the company’s short-format video sharing service, has added to its recovery hopes. Ironically, Nick Bell, the man who […]

· November 12, 2018

A lot has been happening at Snap (SNAP) these days, at a time when the social media app is struggling to tackle the falling user base and weakening market value. Of late, the growing popularity of Discover, the company’s short-format video sharing service, has added to its recovery hopes. Ironically, Nick Bell, the man who headed that segment for more than five years stepped down this week. Bell, in his parting letter said he is “taking some time off to recharge.”

The content unit, which achieved significant progress under Bell, will now be led by Jared Grusd who joined the company recently as chief strategy officer. The media sharing platform had a lackluster start as a public company, often failing to face stiff competition from the likes of Facebook’s (FB) Instagram.

Most of the recent organizational changes at Snap can be traced to a botched redesign of its platform several months ago. The company lost millions of users in a short period of time, which according to the current estimate will take a long time to recoup.

Most of the recent organizational changes at Snap can be traced to a botched redesign of its platform several months ago

Snap desperately needs to ramp up its finances, thereby boosting the morale of shareholders and customers. It seems the augmented-reality advertising rolled out by the company holds the key to its revival. Reports this week revealed that a cheaper version of the AR ad service is finding many takers. Snap can use the early lead in this pioneering technology to its advantage.

Will Snap be able to bounce back?

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Meanwhile, there seems to be a fresh threat from Facebook to Snap’s video-sharing platform, this time in the form of Lesso, a unique video service being launched by the social media giant. It needs to be seen how the Snap leaders will respond to Facebook’s plan to integrate Lesso into Instagram, giving a whole new experience to users.

Separately, Imran Khan, a key executive who left Snap after leading the 2017 IPO, is reportedly doing the groundwork to launch a new online retail platform.

At $6.65, Snap shares are currently trading at a record low. The stock, which plunged about 54% since the beginning of the year, traded lower during Monday’s regular session.

 

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