Snapchat is that tech company which has been suffering a lot from the last few years because the company has been continuously posting a lower amount of revenue and profit. However, if we look into Snapchat’s fourth quarter ending reports, then it has beaten everyone’s expectations due to which company’s shares went up by more than 20% and has given some hope to its investors. In the company’s fourth-quarter report it’s been found that Snapchat has 186 million daily users as compared to analysts prediction of 184.91 million. Many analysts on wall street predicted that the company would lose its regular active users and that’s why they predicted a low number of revenues, but it seems like the company has beaten everyone’s expectations. Snapchat is famous for unique features like message getting disappear after few minutes and converting a human’s face into dogs or any other animals by using filters.
Snapchat went to public two years ago and since that time company’s shares are continually declining, and investors and top executives have been worrying about company’s future, but after seeing a fourth-quarter report, they might get a little bit of hope. After a few hours of earnings report the company’s share went up by 22% and closed at $8.62. The company has always been lacking in its vision because except Snapchat’s core user base it has failed to gain new users which show that they need to improve their platform more significantly. Facebook is already giving a significant challenge to Snapchat with its Whatsapp, Messenger and even with the Instagram app also. So it will be hard for Evan Spiegel and his team unless they come up with innovative ideas to scale up the company’s business.