The end of the golden age of social networks

A turnover of 262 million dollars (225 million euros) over the last quarter, up 44% compared to 2017, losses limited to $ 353 million or – 20%), and a hearing for the first time in decline (– 2 % compared to the first quarter of their fiscal year). In a period where the major social networks in the west are booed on the stock Exchange, the quarterly results published by Snapchat, Tuesday, 7 August, are too contrasty to reassure the markets.

Their announcement comes in the wake of the collapse of securities Facebook and Twitter. The first has seen its share price will fall by more than 19 %, Thursday, July 26, following the publication of quarterly results disappointing. Those of the latter, the next day, do not have more pleased the investors : in two sessions, the action Twitter has lost nearly 25 % of its value. This sequence of events, unexpected, made from leaves a mark : the economic model of social networks has he lived ?

One thing is for sure, their image is generally degraded in the past two years. Disinformation campaign during the referendum on the Brexit and then during the american presidential election, and the proliferation of hate messages, data leakage mass (case Cambridge Analytica) have highlighted the darker side of social networks – Facebook and Twitter in mind.

Concern of the markets

Their economic model, founded on the exploitation of users ‘ personal data to generate advertising revenue, is also disputed. Entered into force in Europe in the month of may, the general Regulation on data protection (RGPD) is specifically intended to give back more control to the users of these platforms can now retrieve all of the data collected by these services, or to refuse to be the subject of targeted advertisements.

As many of the headwinds that had strangely not seem to affect until then…

Like this post? Please share to your friends:
Leave a Reply