Snapchat to run out of steam as user growth stalls
With just $1.4 billion in its kitty toward the finish of third-quarter results, the already struggling multimedia messaging platform Snapchat could even lose $1.5 billion out of 2019, analysts have predicted. Snapchat lost almost 2 million daily active users in the third quarter this year and now has 186 million everyday users.
“Snapchat could come up short on cash a long time before it’s projected to break even in 2020 or 2021,” TechCrunch reported on Sunday, market research firm MoffetNathanson.
Snapchat’s everyday active users’ number shrank 1.5 percent to 188 million in the second quarter of 2018, down from 191 million in the first quarter this year.
It gives the idea that Facebook-owned Instagram “Stories” has slowed down Snapchat’s development. More than 400 million people use Instagram’s “Stories” feature every day to post photographs and videos that vanish following 24 hours.
WhatsApp’s Snapchat “Stories” clone called “Status” has likewise hit 450 million daily users. “Snap did successfully reduce the rate of its free-cash-flow burn from a loss of $234 million in Q2 2018 to lose $159 million in Q3.