NEW YORK (AP) – Facebook once failed to buy Snapchat; ever since, it’s tried to copy it, mostly without success.
Until now. Facebook’s Instagram Stories, a clear Snapchat clone, has more daily users than Snapchat itself – and parent company Snap Inc. should be very worried.
Snap’s stock price has fallen 45 percent since its initial public offering in May. While the doom doesn’t spell imminent death, it’s a sign that Snapchat could be relegated to the sidelines as a niche app for young people – or worse, a passing fad – rather than a major competitor for digital ad dollars like Facebook and yes, even Twitter.
An analyst for Morgan Stanley, the lead underwriter for Snap’s IPO, recently cut his rating of the company’s stock, citing competition from Instagram and worries that Snap’s advertising offerings aren’t evolving or improving. The analyst, Brian Nowak, said the company needs to do more so that advertisers don’t see it as a mere experiment, but a serious player.
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