Snapchat’s shares hit a record low amid redesign backlash
CEO Evan Spiegel explains the dramatic reorganisation of the mobile photo-sharing app, saying short-term pain is necessary for growth
New York — Snapchat’s redesign isn’t working. In November, parent company Snap embarked on a dramatic reorganisation of its mobile photo-sharing app to combat sluggish growth. But once the update reached all of Snapchat’s users in the first quarter, user additions and sales slowed even further amid a public revolt over the new design. Revenue gains in the current quarter will be even smaller, the company said Tuesday, sending shares plunging as much as 20% in New York Wednesday, the biggest intraday drop in almost a year. CEO Evan Spiegel made the case that while the change is disruptive in the short term, it is necessary to fuel Snap’s business into the future. But two quarters in, he is having a hard time making that argument work. Spiegel’s pitch for the new way of using Snapchat was rooted in his strong belief that messages and posts from friends should be separate from content from strangers and companies, and that mixing the two makes real relationships less intimate. Celebrit...
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