Snaps users are ghosts.
For the first time since the company was founded in 2011, Snap showed a decrease in the number of people using Snapchat on a daily basis. 188 million people used the app daily in the second quarter of 2018, a decrease of 2% from the previous quarter.
Snap CEO Evan Spiegel pointed to the outspoken response to Snapchat’s November redesign as the main reason for the dropoff in the users but competition from rivals like Instagram and friction from the latest European privacy rules probably also contributed to the decrease.
Investors initially chose to focus on the good news from Snap’s performance report – a narrower loss and higher than expected income. (Snap generated $ 262 million versus a $ 250.4 million consensus estimate analyst surveyed by Thomson Reuters.) This hit the stock price 13% to $ 14.60 in the after-trade, but it soon fell back to earth like the Conversation started and dropped to $ 13.18, just around the price of the market.
If Snap can not find a way to keep users back day after day, the pictures will not be the only one that disappears on the platform.