>> Type in Snapchat in your social media feed, and you'll notice something. It seems like just about everybody has something to say about Snapchat's latest changes. Most of it negative, including Wall Street. The research team at Citi downgraded the stock to a sell. Sending shares lower on Tuesday and the selling continues on Wednesday.
Citi saying in a note, quote, the significant jump in negative app reviews since the redesign could result in a decline in users and user engagement and could negatively impact financial results. Reuters correspondent David Ingram explains what has Snapchat users In an uproar.>> Some users really don't like the new Snapchat redesign, because it moves what they call the stories, which are a series of photos and videos that you can post and they disappear within 24 hours.
Stories is a really popular Snapchat product that was later copied by Instagram and Facebook. The idea for the company was to move all the friend material to one side and all the publisher material to another, but I think for a lot of users, it's just something that they find confusing or it's breaking an old habit for a Snapchat user.
>> And social media users hate change, at least at first. Changes on Facebook and Twitter initially sparked similar backlashes but as subscriber numbers show, either they come back or new users sign up. The rancor over this redesign is chipping way at renewed enthusiasm about Snap's future. It recently posted a 72% surge in quarterly revenue.
Investors fear that success could be short lived if Snap's core millennial base goes away and advertisers follow. Snapchat responded to complaints made by a petition on change.org by promising a new upgrade in the coming weeks. But it's not clear whether the fix will undo the maligned redesign or simply try to fix it.