SNAP will concentrate on expanding and diversifying its underperforming advertising business with a focus on augmented reality, CEO Evan Spiegel informed employees in a note on Tuesday.The announcement comes amid a challenging period for the Snapchat owner, as it contends with major social media players such as Instagram parent Meta Platforms and Bytedance's TikTok for advertising revenue.
At the start of August, Snap projected a weak forecast for the current quarter, citing a decrease in advertising spend and is now expected to report fiscal 2024 revenue of $5.34 billion, according to LSEG data.Snap's stock has fallen around 48 percent so far this year.The company will also revamp its market strategy by launching new ad placements powered by machine learning and automation.It is also developing augmented reality and smart glasses, much like its peer Meta.