Snap Inc’s (NYSE:SNAP) Shares Plunges After Negative Review Of its Latest Feature

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Snap Inc (NYSE:SNAP) is planning to launch a group video chat feature that accommodates up to 16 people at once and about 32 people for voice call. However, the feature has not been received well by its potential users with several market analysts calling it a ‘House-party. As a result, the share prices for the company dropped to 8.9% by the beginning of the week. Snap declined commenting on the reports.

The feature allows users to tap the video camera icon to invite friends for a group video chat either through a video, voice or text chat. Snapchat had launched a similar feature about two years ago that allowed seamless talking, texting, video chatting and much more all in just one conversation.

According to the company, the latest group video chat feature will be available to all its users globally by the end of the week. However, the product is already in the market, for instance, Instagram Stories has a similar feature. In the past, both Instagram and Facebook have been copying most of the Snapchat’s features and not the vice versa like in this case. Also, Snap’s newest group video chat feature is related to a Facebook messenger feature that was launched two years ago.

Meanwhile the investors of Snap are likely to sell off their shares if the firm continues receiving negative reviews on its app particularly from its key users who are very influential in moving the market. According to Michael Nathanson a market analyst at MoffettNathanson, the latest Snap’s redesign has students interviewed in a focus group all disliked the firm’s app redesign.

Most users of Snap have reported their concerns on the redesign of the app especially the new contact page, the Stories section and the increasing number of alerts that are a nuisance to the clients. A great number of its users are not happy with the changes to the icons.


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