It is now clear beyond any reasonable cloud of doubt that indeed the redesign of Snap Inc (NYSE:SNAP) isn’t working quite well. Way back in November, parent company Snap Inc made it known that it would be doing all within its means to combat sluggish growth. One of the strategies according to a person well conversant with the matter was to reorganize its mobile photo-sharing app.
Earlier on, there had been a public revolt over the most recent design. A person well conversant with the matter disclosed that the revenue gains in the current quarter would be growing even smaller. The shares might be plunging by as much as 19 percent in extended trading period.
Evan Spiegel’s Stand
Evan Spiegel, who happens to be the Chief Executive Officer of the company, stated that there was great need to fuel the business of Snap into the future regardless of the fact that the change was deemed disruptive in the short-term. It is now two quarters down the line yet Spiegel hasn’t yet been able to make the argument work accordingly.
It is also worth noting that he admitted that the new design had sparked about some strong headwinds in their overall revenue streams for the quarter. It had also altered users’ behavior causing much apprehension among a large number of their advertising partners. It was through a call that Spiegel addressed the various investors letting them, know that the redesign was all about pushing them much closer to the accomplishment of their mission. He asserted that they remained firm on dismissing most of those things that they did not like.
Spiegel asserts quite much in terms of effort that will be channeled towards the optimization of the latest design. However, fears are taking the centre stage with quite a significant number of people holding on to the conviction that the company might end up losing its high end status simply because of the whole redesigning affair as well as the putting to a test the patience of the large number of investors. One market analyst has outlined that the issues the company is facing at the moment goes beyond the redesigning.