Online tech companies are facing all kind of challenges. Facebook is facing the challenge of the privacy issue where data is being collected on the habits of Internet users. Sites like Dropbox are facing competition that comes from other cloud storage companies. There always seems to be so many different things that can affect tech companies in a negative way.
Snapchat is one such company that has seen a lot of changes in recent months. This company was a private company for a long time, but it eventually went public. After it went public it would become a company that would face a lot of challenges because it did not easily make money the way Facebook did. It was a company that became much more complex because it was not doing a lot of advertising. There were not as many ways to bring in revenue.
What essentially happened is a decrease in the number of users once this company went public, but it is not all based entirely on the lack of advertising opportunities. A random tweet from Kylie Jenner about how she did not use Snapchat as much as before was something that would also send the stock price of Snapchat down tremendously. Another thing where recent changes that were made to the software platform. All of these things would be contributed to the way that this app has become utilized less by people that are interested in this type of social media. There are so many other possibilities that exist for social media so it becomes difficult for an app like Snapchat to compete when a popular reality star like Kylie Jenner has made these type of comments.
She did go on to say that this was still an app that she loved, but it contradicts with the fact that she barely uses this out anymore. More people are utilizing Twitter because it only involves a single comment. More people are using Instagram to post pics. Snapchat, as cool as it may have been to hide text messages, has become something of an app that has been put on the back burner. The fact that it never became an app that could generate a lot of revenue made it even less likely to grow.