By Stephanie Yim, Summer Intern.

Snapchat has been one of the top Social Media apps for several years until very recently when their stock plummeted due to financial results. They have failed to fix major issues from slowing their user rate growth and being competitive with other Social Media platforms like Instagram and Facebook. Snap stock is not looking promising as people are told to stay away from investing in them.

Snapchat’s share price fell 25% after the company blamed Apple for a recent update to the iPhone’s privacy settings. The new update, called App Tracking Transparency (ATT), meant that apps can no longer collect data about users from third parties and use that data to better target them with ads unless a user specifically gives the app permission. Snapchat app runs majorly on tracking data and ads, which was a major problem. Another threat was supply-chain issues in cutting back on advertising due to the global supply-chain crisis.

Although Snapchat had the highest drop in their stocks, shares of Facebook, Twitter, Pinterest, and Alphabet also saw drops on their shares. Snapchat has since recovered their loss from their plummet, but is still down over 20 percent in pre-market trading.

While we are a social media agency we are sharing this news because it is a reflection of our current social media climate. Snapchat was once one of the most popular apps amongst millennials but now has gained favor with Gen Z. Snapchat remains a popular product marketing tool for new products that are hitting the market. Their recent dive into AR technology to advertise is also gaining traction. While the company’s stock is taking a hit right now, their future technology and marketing strategy using Augmented Reality software is still catching the interests of major brands.