On Tuesday, the 6th of August 2019, US-based technology and camera company, owner of popular messaging app SnapChat, based on Santa Monica told that the CA-based company had been seeking to raise as much as $1 billion in short-term debt in order to invest more in augmented reality features and media contents.
Besides, the grief-sickened & loss-making tech company added that its latest fundraising campaign might help it purchase other companies, which in effect would enhance its diversity and improve scalability. In point of fact, after facing off a flurry of fatal blow last year, the parent company of messaging app SnapChat rekindled its user base, which eventually added to a boost in its share prices.
Apart from that, Snap had launched a mobile game within its messaging app SnapChat and added Augmented Reality features such as lenses which could overlay different kinds of funny effects over a user’s photo, however, Snap Inc.’s last year’s drought-run seems unlikely to step aside anytime soon, since the social media app developer had been grappling with steep competition from much-larger rivals likes of Facebook Inc.
and startup social media apps such as TikTok, suggested analysts. Nonetheless, followed by Tuesday’s (August 4th) statement, Snap CEO Evan Spiegel had been quoted saying in an emailed memo to his employees, “We will continue to focus on developing our content, gaming, and augmented reality platforms to enhance the Snapchat experience for our community”.
However, in context of growing worries over the loss-making company’s profit margin this year, which would likely to faltered further while wrestling underneath its havoc-scale debt-pile of $1 billion, NYSE-listed shares of Snap wrapped up Tuesday’s (August 6th) market down by 1.03 percent to $16.29 a share after falling as much as 1.67 percent to $16.18 per share during midday US trading hours.