One analyst says former social media king Snapchat may be out of money in 2020.
According to a new CNBC report, the app is “quickly running out of money” as shares of Snap Inc., Snap’s parent company dropped five percent today to $7. It’s the lowest value for the stock in over a year.
2018 has not been a good year for the app following public dismissals from celebrities such as Kylie Jenner and Rihanna. Couple that with a non-beloved design update and the growth of Instagram stories and more and yeah, Snapchat may be on its last legs.
“While it is obvious that Snap wasn’t prepared for life as a public company, it now has a more pressing problem. It is quickly running out of money,” media and tech analyst Michael Nathanson of MoffettNathanson wrote Tuesday. He says the company needs a “miracle” solution ASAP, or it could be O-V-E-R in 2020.