Snap will focus on expanding and diversifying its underperforming advertising business with an emphasis on augmented reality, CEO Evan Spiegel said in a memo to employees on Tuesday.
This announcement was made Snapchat The company is competing for advertising revenue with other major social media companies, including Instagram’s parent company Meta Platforms and ByteDance’s TikTok.
“You may wonder why our stock price has lagged the overall market given all the progress we’ve made in our business last year. The answer is simple: our advertising business is growing slower than our competitors,” Spiegel said in the note.
At the beginning of August, snap The company has softened its guidance for the current quarter citing lower advertising spend, and now sees revenue of $5.34 billion (roughly Rs 44,837 crore) for fiscal 2024, according to LSEG data.
Snap shares have fallen about 48% so far this year.
The company also revamped its market strategy by launching new ad placements, Machine Learning (ML) And automation.
The company is also developing augmented reality and smart glasses, similar to its competitor Meta.
“We are investing in the development of AR glasses that will enable people to interact with computers, the world, and each other in entirely new ways,” the memo said.
In June, Snap released a generative AI tool that lets users apply more realistic effects to photos of themselves with their phone cameras.
© Thomson Reuters 2024
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