Snapchat after a prominent setback is back in the business with its new outlook and updates. Not only the number of users has increased exponentially but of course, its shares have skyrocketed in an unimaginably short period of time.
Before this, Snapchat had obvious flaws like slow uploading of the videos and unattractive backgrounds. However, CEO Evan Speigel never seemed to care about it, about which he confessed himself in a recent statement. He said
“Historically we’ve really focused our efforts on markets where [high-end phones and broadband mobile networks] are available.”
This careless response towards the performance kept Snapchat profits flat in previous years with only 39 million users. Moreover, Instagram gave another blow to Snapchat’s business by launching their ‘story’ feature. It was probably an eye opener for Speigel as he said three months ago.
“In order to further scale our user base, we need to accelerate the adoption of our product among Android users . . . and users in the Rest of World markets.”
And the hard work paid off! Today Snapchat recorded groundbreaking growth in its users with a growth rate of 5 percent which was before the updates, only 2.9 percent. The massive increase in growth rate boosted the share prices from up to 21 percent!
Let’s just hope that Snapchat maintains the growth chart in order to provide some quality performance of the app to users all over the world and keep its competitors in its place.