Apparently, things are not going so well for Snapchat. Shares of Snapchat-owner Snap went down by 1.2 percent after its main rival Instagram announced that over 200 million people use its Stories feature every day.
In Jaunuary this year, Snapchat boasted of 161 million daily active users, which was the largest by a technology firm in three years. On the other hand, Instagram had 150 million daily active users in January, which means that it had witnessed a 33 percent increase in its daily user base. The Facebook-owned company introduced the stories feature to its users last year, which was almost similar to Snapchat.
This feature enables users and businesses post photos or videos that get disappeared after 24 hours, just like Snapchat.
Interestingly, Facebook also copied the popular feature of Snapchat and launched an update that lets users post photos from their smartphones. Moreover, one can even add visual geolocation tags and details such as fun filters and Snapchat-like lenses to the pictures and videos.
Since that time, even though Snapchat's rank on public listing went up, it has been facing a tough competition from both Facebook and Instagram.
Yesterday its stock fell 23 cents and traded at $19.99 (around Rs. 1,300). It is down by 26 percent from a record high close on March 3. However, it managed to increase its per share IPO price by 17 percent from its previous $17.
Next month, the company will announce its quarterly results for the very first time in terms of a publicly listed company. As per the data collected by Thomson Reuters, it will end up losing approximately $193 million.