During their roadshow presentation, Snap Inc. authorities have said that they are trying to stay ahead of their arch rival Facebook by building ad friendly software features and superior hardware gadgets.
Snap Inc. failed to allay investors worries
Investors were worried about the slow growth of Snapchat photo-sharing mobile app during the fourth quarter after their product faced some technical difficulties with their Android version. It was clearly evident that investors were concerned with the company’s growth, especially after rival Facebook’s Instagram app recently borrowed Snapchat’s popular photos and stories disappearing-video feature into its popular apps on top of the Android snafu.
According to some investors present at the presentation held in New York, Snapchat officials have failed to disclose their future plans and investors are worried about whether investing with the company is a good move.
Cloud spending another serious issues faced by Snapchat
In addition to a problem with the Android product, Evan Spiegel, the CEO of Snap Inc., had to answer other issues the investors had at the event. Evan said that the company is aiming to raise $3.2 billion via the initial public offering (IPO).
Shares will start trading at the New York Stock Exchange from 2nd March under the symbol SNAP. The company is committed to spending more than $2 billion on Google cloud and around $1 billion on Amazon cloud.
Spiegel said they hope to see a decline in the cost in the coming months.
Snap starts selling spectacles online
Snap Inc., aiming to sell quality hardware, has secretly hired hundreds of hardware engineers and is currently developing hardware products at an undisclosed location. They have now started selling their video recording spectacles through the online portal spectacles.com.
The site is charging $129.99 in the U.S. for the video recording spectacles.
According to reports, buyers could wait 2 to 4 weeks to get their video recording glasses. Customers can buy charging cases and charging cords directly from Snap at a cost of $49.99 and $9.99 respectively. The products will no longer be available on Amazon.
Slow approach adopted for Snap Spectacles
According to their Spiegel, Snap has been slow on producing video recording glasses as they want to know the feedback of users and see how the spectacles are impacting their lives. He said that after the product’s launch last November, the feedback has been positive and that’s why they are concentrating on increasing inventory so that it can reach the maximum users in the US.
According to experts, Snap inc. really needs to prove that they can make some money from Spectacles and gain the faith of investors and prove that they can move ahead of rival Facebook.
