Where Will Snap Stock Be in 1 Year?
Snap's (NYSE: SNAP) stock popped nearly 9% on Aug. 31 after the company announced that it would lay off about 1,200 employees, or approximately 20% of its workforce, as it grapples with a severe slowdown.
Snap will discontinue its investments in its Snap Originals videos, its Minis mini-programs, its video games, and its Pixy selfie drone. It will also shut down its location-based social networking app Zenly, which it acquired in 2017, and its music creation app Voisey, which it bought in 2020.
In an internal memo, CEO Evan Spiegel said Snap's revenue had only risen about 8% year over year so far in the third quarter, which was "well below" its own expectations and would represent its slowest growth rate as a public company. Spiegel said Snap "must now face the consequences" of that slowdown and "adapt to the market environment."
Source Fool.com
