Why has Snapchat stock gone down so much?.In conclusion, the 40% drop in Snapchat’s share price could be due to a combination of factors including slower user growth, an inability to monetize sufficiently and its corporate governance structure. This could be disconcerting for investors who may want more control or a more traditional corporate structure. Snapchat has a two-tier stock structure that gives its co-founders substantial voting power and ensures that any major decisions require the approval of two of its three co-founders. This limits Snapchat’s potential for revenue growth and may be causing some investors to be wary of Snapchat’s future prospects.įinally, Snapchat’s corporate governance structure could be a factor in the share price drop. Although Snapchat has many loyal users, most are younger and may not be able to buy or use services offered by Snapchat. Second, there may be some concern among investors that Snapchat has not been able to monetize its user base effectively. This could be because other social media platforms, such as Instagram, have similar features and have grown more quickly than Snapchat in recent years. While Snapchat had a strong start shortly after going public, their user base has leveled out over the past year. Petry Oral Spray Reviews Does It Really Work?įirst, investors may be worried about the growth potential of Snapchat’s audience.
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