A stern warning has been sent out by Citigroup to Snapchat’s clients with a statement which revealed that Citi had devalued the stock belonging to Snap to a rating of its sales, making a reference to the influx of unpalatable reversal against Snap’s latest design of its app!

Snap’s new Interface

A professional analyst and a spokesperson for Citigroup, Mark May, says that a notable rise in unpalatable reviews of apps, which have emerged since the recent redesign that was made public some weeks ago may lead to a massive reduction in its users and fanbase.

Snapchat Team Was Criticized For Their Latest Snap Design

Since Snapchat unveiled its new design, its users have begun to express disgust at the social network’s latest action, which led to series of harsh criticisms all over the internet and the affected social media platform. In view of this, a deep interest in the matter has been shown by Wall Street, which is silently observing the unpleasant development and rising worry because of the social media’s population of users and its accompanying financial status.

Representatives of Citigroup announced in a letter which was published on the 20th of February that the social networking company has its stock abased by Citigroup, lowering its rating of sales and making mention of the inflow of unhealthy comments against Snap’s new design.

Snapchat Might Lose its Users

Mark May explained that Citigroup cannot overrule the fact that the latest redesign of Snapchat’s forerunner app could bring good results in the long-run, however, the backlash that followed the development and the poor reviews by apps’ users, which have been occurring since the latest redesign, may result in a huge loss of its members and affect their interactions. All this effect would be bad for Snap’s financial returns, says May in the letter.

Bringing May’s prediction on Snap’s financial backlash to reality, a report showed that the shares for Snap dropped by over 7% on Tuesday.

Evan Spiegel the CEO of Snapchat

Snap made the latest phase of its redesign, a move to change the entire outline of the site, with the intention of making usage and navigation of the app simpler for its users. Unfortunately, the action only sparked criticisms from the public. A large number of users using Reddit and Twitter are complaining that its navigation is now more difficult and it looks like the new face of Snapchat is only meant to serve advertisers but not average users.

There Is No Comment From The Team Regarding New Design

Many inquiries have been sent to the company to air its side of the story, but its representatives did not provide any response, nor post any comment.

The new design shows that there is a merger between ‘Stories’ feature and pending Snapchats, being placed separately on the page called ‘Friends,’ and there is no more chronological method of ranking in users’ chats. A feature with an algorithm will now help users to select ‘Stories’ from the list of friends, it believes they so much care for on the scale of preferences.

If users would love to repeat the view of a story, they would have to navigate to the top and look for the exact name of the person who made the Story. Making the process of search slower and cumbersome is the endless array of sponsored posts and celebrity news, all on the same page.

Users Think That Snapchat Should Return To The Former Version

May added that Citigroup would bring the targetted price on Snap’s share down to $15, signifying 32% drawback from the close of Friday’s results. He also forecasted the active Snapchat’s membership is increasing to 18% in this new year, equivalent to its status which was recorded during the same period in 2017.

Sadly, the reception that greeted the latest redesign is very unfriendly and uncommon, as a result, a large number of people close to 1.6 million have angrily tweeted against it. They registered their displeasure at Snap’s insensitivity and had demanded that the company should scrap the design and return to the former version.

Head Office Of Snapchat Company

Snapchat came about in 2011 by Evan Spiegel, in partnership with Brown Reggie and Murphy Bobby. Based on statistics, Snapchat had 330 million workers under its payroll as of 2015. An update dated 13th February 2018, showed its daily active members to be around 189 million, with over 10 billion video views per day, over 400 million unique story posts made per day and amazingly, over 20,000 photos go round the app per second.

So far, the company has recorded a profit of $1.8 billion but if Citi’s warning is anything to go by, we can only hope that these successes would be maintained if Snap doesn’t do something fast.