Snap, parent company of Snapchat, has seen its stock value decline by over 43% in the past year, trading significantly below its IPO price and all-time high due to slowing ad sales and competition. In 2023, Snap's revenue flatlined as the company faced challenges from Apple's iOS update, competition from TikTok and Instagram, and macroeconomic conditions. However, in 2024, revenue rose by 16% as the company saw overseas growth and introduced new ad tools, stabilizing its North American ARPU. Although its operating margin remains negative, it improved year-over-year in early 2025.
Snap lost over 43% of its value in the past year due to slowing ad sales and increased competition, trading significantly below its IPO level and all-time high.
Snap's revenue flatlined in 2023 due to Apple's iOS update, competition from TikTok and Instagram, and challenging macroeconomic conditions.
Despite facing challenges in DAU growth and ARPU in North America, Snap's revenues rose by 16% in 2024 driven by overseas growth and ad tool improvements.
The company's operating margin remains negative, yet it showed year-over-year improvement in the first quarter of 2025, indicating potential recovery.
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