Snap Inc. ( ) a reputed multimedia and social networking company based in America, created by three former students at Stanford University, reported loss of $2 billion in its first initial public offering. This huge revenue fall was biggest for any technology company till date in US. Though many investors were hopeful about Snap’s first quarter report, the company didn’t live up to the expectations, and the numbers were quite shocking. Facebook and twitter the rival companies of Snap Inc had also disappointed with their revenue in the first quarter but being giants compared to Snap, their bad performance isn’t a big deal.
The CEO of the company Evan Spiegel, isn’t known for his public appearance but this time he has answered all the queries confidently and has taken control of the situation. He mentioned that the reason of such a tumble might lie in unawareness of the value of his platform and the business model of the company. Even he has not missed an opportunity to hit Facebook by mentioning that Facebook is copying most of Snapchat’s features. The recent feature of Snap ‘stories’ which automatically delete the videos and photos after 24 hour of its posting has also been implemented on Facebook which drastically reduced the number of Snap users. In 2013 Facebook proposed to buy ephemeral photo-messaging app from Snap but was not successful.
Being questioned about how they are going to deal with the competitor, assuring investors he said “If you want to be a creative company, you have got to be comfortable with and enjoy the fact that people copy your products if you make great stuff”. Further illustrating his though about competitors he gave example of the competition between two internet search companies Yahoo and Google saying both had same features but the latter had overpowered the former.