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Snap Shares Falls Down to An All Time Low

After dropping as much as 8.6 per cent to bottom out at an all-time low of $6.84 per share, the social media company's stock recovered to close at $7

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Snapchat, snap shares
Snapchat expands 'Our Story' feature to media partners. Pixabay
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 Photo-messaging app Snapchat’s parent company Snap shares fell to an all-time low after an analyst commented that the company may run out of cash by 2020.

Snap shares tumbled more than six per cent on Tuesday after a Wall Street analyst said the Snapchat parent was “in danger of running out of cash by 2020”, NYpost.com reported.

Last week, Snap CEO and Co-Founder Evan Spiegel told employees in a 15-page memo that the company is gunning for “full-year profitability” in 2019.

Snapchat, snap shares
Snapchat on a smartphone device. Pixabay 

Instead, Snap is poised to fall “woefully short” of that goal, losing a projected $1.5 billion next year, according to Michael Nathanson of research firm MoffettNathanson.

Snap is not only “running out of money” but also lacks “options to rectify its cash burn problem,” Nathanson was quoted as saying.

After dropping as much as 8.6 per cent to bottom out at an all-time low of $6.84 per share, the social media company’s stock recovered to close at $7 — 59 per cent below Snap’s IPO price of $17 per share in March 2017.

Also Read: Snapchat Expanding Its ‘Our Story’ Feature

Nathanson called Facebook the cause of Snap’s woes — the result of its having “unashamedly copied promising product features, such as Stories, and deployed them across its platform.” (IANS)

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Social Networking Giant Facebook To Develop Camera-Equipped Set-top Box For TVs

Facebook declined to comment on the subject, the report added

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Facebook likely to launch camera-equipped hardware for TVs. Pixabay

Social networking giant Facebook is developing a camera-equipped set-top box for TVs that would support functionalities like video-calling, a media report said.

Internally codenamed “Ripley”, the device would use Artificial Intelligence (AI) to automatically detect and follow people as they move through the frame during a video call, news website Cheddar reported on Tuesday.

Apart from facilitating video-chat, the device could also help Facebook compete with the likes of Apple and Amazon in the TV-segment.

In October, the social networking major launched its smart-speakers — “Portal” — which incorporated AI technology to follow user-movements while on a video-chat amd remove unwanted background noise during a call.

Facebook
Facebook, social media. Pixabay

Priced at $199, sporting a 10-inch display, built-in Amazon Alexa support and pre-loaded with Facebook’s own “Watch” video service, the smart speakers would begin shipping in November.

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With projects like “Portal” and “Ripley” Facebook is trying to build a consumer-hardware business outside of its virtual reality brand ‘Oculus’ that was acquired by the social networking giant in March 2014 for nearly $2 billion.

Facebook declined to comment on the subject, the report added. (IANS)

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