Snap Inc. Stocks Plummet Amidst Further Negative Expectations

Snap Inc. is a digital company that was established in the last quarter of 2011 by Bobby Murphy and Evan Spiegel. The company has its headquarters at Monica in California. The company deals on four major products which include; Zenly, Bitmoji, Spectacles, and Snapchat.

Background

The company first came to limelight in the last quarter of 2011 following the reintroducing of Picaaboo after it (Picaaboo) was hacked on 31st December, 2013.

In January 2014, the company turned down various offers from companies to acquire the budding business including that of Mark Zuckerberg, CEO of Facebook.

Snap Inc. Bobby Murphy and Evan Spiegel.

In mid-2014, the company took steps to reintegrate them into the social media platform further. The steps include;

* Acquisition of Addlive (A software developing company).

* Contracting with Federal trade commission to utilize what is left of leaked user data.

To further achieve their aims, the company bought the Vergence Laboratory for $15 million which was partly paid for in Stock and cash.

Facebook was among the big companies that courted Snap Inc. in 2014, but the management refused to trade.

In mid-2015, the company relocated from its initial base to a complex measuring about 48,000ft within the Venice Beach axis.

The relocation of the company to the Venice alongside other social media firms such as Tinder and Whisper gave the beach a new outlook, and it was later dubbed “Silicon Beach” by the media.

In the last quarter of 2015, the company further bought Looksery to aid it in the construction of lenses for the company’s app.

From March to mid-2016, the company further acquired a series of firms to help it in improving its mobile app. They include: Bitstrips (for roughly over #80 million), Vurb( for $100 million) and the software developers of Seene company.

In the last quarter of 2016, the company announced that it had named itself, “Snap Inc.” and further renamed its product from “Spectacles” to “Smartglasses.”

In January 2017, Snap Inc. company spread its tentacles further by establishing international headquarters in both London and Soho.

March 2017 saw the unveiling of the company, SNAP to the view of the public wherein roughly about $30 billion was raised on its first day of transactions.

In mid-2017, the company bought the Zenly mobile app which though remains active, has its features integrated into the Snapchat mobile app.

In the last quarter of 2017, the company announced that it reached an agreement with NBCuniverse to produce content features for the mobile app.

Company’s Products cum services.

The company’s major product is Snapchat. The company is in charge of its development as well as its maintenance to give users optimal satisfaction.

The company also produces Smartglasses which when worn by an individual has a direct link to the Snapchat account of the individual. The Smartglasses also aids the individual in recording video clips which can always be changed.

In early 2017, the pair of Smartglasses was made available for sale online. During this period, over 200,000 pairs were sold out to the public.

A second version of the spectacles was however produced in mid-2018 which were sold out across Europe and America.

Plummeting session since IPO.

Snap Inc. has been viewed by many as an unprofitable venture as a result of its depreciation in value since its initial public offering.

The social media platform as of March 2817 when it first came to the limelight was worth about $30 billion, but currently, it is worth a little above $7 billion.

The company renamed Spectacles to Smartglasses to serve its clients better.

The company’s stock further plunged last week to an eye-boggling 12 percent which is said to be its worst hit since mid last year. The hit is said to be linked to the resignation of the company’s CFO few months after assumption of office.

Are there still worst days ahead?

Erin Gibbs, a manager at the S&P firm, is of the view that the company will yet experience another hit below the belt. This, he asserted on the basis that the company’s CFO left the company even though he was offered about 80 percent of the company’s stock which points to the fact that he was aware of the company’s cesspool.

According to various researches, it is speculated that Snap Inc. will incur a net loss of about 17 cents per share when it eventually uploads its earnings on February.

Furthermore, investors are scared to invest in the enterprise as they have been unable to receive a return of their investments unlike what is obtainable in its counterparts such as; Facebook and Instagram.