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00:00:01
>> One of Snap's worst weeks as a public company mercifully came to an end Friday. Anemic user growth at its signature product, messaging app SnapChat, sending investors scrambling for the exits, obliterating roughly $3 billion in market cap. Throw in a nearly $500 million quarterly loss and a fierce competition from Facebook and Instagram, and the future suddenly looks cloudy for what was one of the year's hottest IPOs.
00:00:28
So where does Snap go from here? Ask Chinese gaming company, Tencent, which recently snapped up a 12% stake, says Reuters tech correspondent, Dave Ingram.>> Tencent is suggesting that there could be more games on SnapChat. We haven't really seen games on that app. They also announced that because SnapChat has proved so difficult for people to use, they're gonna redesign the entire app.
00:00:53
It's going to include something like a news feed that Twitter and Facebook have pioneered, but that SnapChat hasn't really included as part of the app.>> Tencent's game, Honor of Kings, is the top grossing mobile game in the world. It's so popular that the company, in July, limited playing time amid reports of addiction among children.
00:01:16
While such bells and whistles could bring more users to Snap, don't expect it to snap back anytime soon, says Ingram.>> SnapChat is burning through cash in the sense that they're nowhere near profitable, and the question is now they're going to increase spending even more. They're going to put money toward a big redesign.
00:01:36
They may seek to move into other markets. They might need to hire additional engineers, other teams of people, and ad sales. How much are they gonna be losing in the 4th quarter, or early next year? People are gonna be watching how quickly it's burning through cash.>> SnapChat's redesign will reportedly debut in about a month.