Snap is expected to report a loss of $0.09/share on 1.2B dollars revenue in Q4 compared with a loss of $0.08/share on 911M dollars revenue last year. Analysts have suggested that Snap has been struggling with the transition from a “mobile-first” to an “advertising-first” company.
Snap has seen its stock drop more than 40% since it went public in March 2017. The social media app first gained popularity due to the fact that users could send photos and videos that disappear in a matter of seconds.
However, with increased competition from Facebook, Instagram, and other platforms, the app has lost some of its appeal. Snapchat is having trouble attracting new users, especially from the younger generation. Users aged 18 to 24 have fallen by a rate of 2.8% over the past quarter. Competing apps such as Instagram and Facebook are trying to lure the same users by incorporating similar features that Snapchat offers, such as face filters and disappearing photos.