Snap Bows To Economic Slowdown; Aborts Plum Drone Project

Author: Anusuya Lahiri | August 19, 2022 08:00am

• Snap Inc (NYSE:SNAP) stopped the development of its Pixy flying selfie camera less than four months after launching the product publicly, the Wall Street Journal reports.
• Snap became the latest technology company to downsize product plans amid the economic slowdown. CEO Evan Spiegel reasoned that it was part of a broader reprioritization of company resources.
• Snap introduced Pixy during Snap's annual partner summit with plans to sell a limited quantity. It will continue to sell the current iteration of Pixy.
• Also Read: Wanna Get Your Hands On A Pixy Flight Pack Drone? Oh, Snap! You Are Staring At A Long Waiting Time
• Snap posted its weakest-ever quarterly sales growth in July due to disruptions in the digital advertising market. Shares plunged almost 40% on those results.
• Snap also battled Apple Inc's (NASDAQ:AAPL) privacy policy, following which Snap lost 80% of its market value.
• Peer Meta Platforms Inc's (NASDAQ:META) Facebook migrated resources from its Facebook News tab and newsletter platform Bulletin to focus on TikTok rivalry and metaverse ambitions.
• Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google launched initiatives to boost productivity while not ruling out layoff options.
• Netflix, Inc (NASDAQ:NFLX), Twitter, Inc (NYSE: TWTR), and Tesla, Inc (NASDAQ:TSLA) downsized the workforce amid the slowdown.
• Price Action: SNAP shares traded lower by 2.71% at $12.22 in the premarket on the last check Friday.
• Photo by Souvik Banerjee from Pixabay

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