It has been, needless to say, a rough week for Snap.
The pain started Monday, with the announcement of layoffs impacting 10 percent of employees. On Tuesday, the company reported weak earnings that sent the stock price tanking 30 percent. You could hear the solemness in CEO Evan Spiegel’s voice on the earnings call, which lasted an unusually brisk 30 minutes.
As I wrote in an October issue, the question of what happens to Snap remains a big one that many inside and around the company are wrestling with. On one hand, Snapchat has achieved a reach — 414 million daily users last quarter — that is rivaled only by a handful of other companies in the world. On the other, as the team at the investing research firm MoffettNathanson put it this week, “It is hard to see how Snap’s competitive position and financial profile gets materially better.”
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