Decline In Snap Share Following CFO Tim Stone’s Resign Likely To Hamper The Social Media Market Growth

Feb-2019 | 99Strategy | Technology

In the recent past, privacy and security on social media platforms have been the key concerns all across the world, reflecting a significant impact on the growth of the social media market. And as per the latest reports, Tim Stone, the Snap’s CFO, will be leaving the firm after taking the role in less than a year. After the announcement, the stakes of Snap declined by 8% to $6.02 (approximately Rs. 430) in the aftermarket trading.

The departure of Stone isn’t associated with any differences with the firm, which possesses Snapchat (a well-liked photo messaging application), ass aid by Snap in a filing. The company also recently has confronted high-profile issues as it carries on to struggle with a widely slammed revamp of the Snapchat application, which further contributed to a drop in the user base of Snapchat over the last 2 quarters.

Also, it has contended with high earnings in its top ranks. Imran Khan, the previous Chief Strategy Officer and Nick Bell, the Vice President of content, departed from the firm in Sept and Nov, respectively. Further, Snap stated in the filing it anticipates reporting 4th-quarter returns and balanced earnings before taxes, interest, amortization, and depreciation near its guidance’s top end.

Previously, the company stated it anticipated 4rth-quarter returns between $355 Million and $380 Million. In a memo to staff, Evan Spiegel, Snap Chief Executive, stated Stone will stay at Snap to assist with the move and the fourth-quarter revenue call of the firm on February 5.

Likewise, even another social media firm, Facebook Ireland Ltd., was fined by the Italian Competition Authority after an investigation probed in April 2018. The firm along with its parent firm Facebook Inc. was fined for entailing in 2 unjust commercial practices in breach of the Italian Consumer Code. Thus, such frequents incidents are likely to hamper the growth of the social media market in the coming period.