Snapchat is known by all technological enthusiasts and beyond. The social network of the little yellow ghost has evolved and is currently one of the most used social networks among the youngers.
Snapchat’s CEO lost $2 billion in little more than 2 weeks
Young, owner and founder is also its CEO, Evan Spiegel. This is one of the youngest multimillionaires on the planet, but this week saw its wealth decline by about $2 billion. That’s right, 2 “bi.” Shares of Snapchat that, when entering the Stock Exchange, initially obtained a quotation of 44 dollars each, are now worth only 17 dollars.
As expected, at least for now, this would be the most obvious scenario, although not as abruptly as this. Why? Because Snapchat is a social network and it is complicated for the company to generate profits, after all, we are talking about a social network aimed at a specific, young audience, and whose end product is not as attractive to potential investors as others in the market.
In addition, there is an external factor to Spiegel’s business that has affected its growth rate. Undoubtedly, the imitation, pure and crude, of the main resource of this social network, by the social networks commanded by Mark Zuckerberg has not helped. Instagram already has the Stories feature since last year, Messenger has received it for days and Facebook will go the same way. And let’s not talk about WhatsApp.
The future of Snapchat gets more and more doubtful
This scenario, looking at what was written earlier, shows that Evan Spiegel lost, in little more than two weeks, about half of his fortune. Each day Snapchat future gets more and more doubtful.
The key issue that has affected the CEO of Snapchat has clearly been the timing of acting. In 2013, Spiegel declined an offer from the Facebook group. Meanwhile, it has surpassed by Instagram and since then its innovation and ability to generate large profits have been practically zero.
We will see what will happen from now on.