Snap’s shares were dragged down by uncertainty in the financial markets over a looming government shut-down. Other tech companies, including Alphabet/Google, Apple, and Facebook also saw their share prices decline, with Facebook investors feeling additional pressure from the company’s latest privacy scandal. Share prices for the social network closed down 6.33% on Friday.
However, Snap stock has been on an extended downward trajectory as the company faces increased pressure over declining user numbers and questions about its ability to compete with Facebook’s Instagram.
These issues came to the forefront this week when a report surfaced that the company was skipping its regular holiday bonus for employees, suggesting that it may not have hit its internal goals.
Snap has also been plagued by a number of executive departures, which included the company’s chief strategy officer Imran Khan, vice president of marketing and brand identity Steve LaBella, former longtime WarnerMedia/Time Warner exec Kristen O’Hara, vice president of content Nick Bell, and vice president of hardware development Sahil Sharma.