Instagram took over.
Remember the days of MySpace? The first major social media outlet for teens was immensely popular for a few years before Facebook came through and took over. Millions of teens and young adults rushed over to Facebook, leaving Myspace as a somewhat obscure site that people only visit now to look at pictures they uploaded over a decade ago. It appears the same thing is about to happen to Snapchat.
Snapchat is losing consumers to another Facebook product, Instagram. Instagram was already a large platform before Facebook purchased it, but it skyrocketed to the top of the charts with the help of Mark Zuckerberg's company. As reported by CNBC, Snapchat is losing consumers and money rapidly. "While it is obvious that Snap wasn't prepared for life as a public company, it now has a more pressing problem. It is quickly running out of money," analyst Michael Nathanson of MoffettNathanson stated. Snapchat's most recent layout change is credited as being one of the biggest deterrents for users.
Snap Inc. CEO Evan Spiegel stated in a recent memo to employees that he aims to make the company profitable next year, and a slew of new strategic goals have been introduced. "In our excitement to innovate and bring many new products into the world, we have lost the core of what made Snapchat the fastest way to communicate," Spiegel wrote. Snap currently sits 60 percent below its initial public offering.