Facebook has been competing with Snapchat for the past year or so. The company started cloning Snapchat last year, introducing products like Instagram Stories, Messenger Day, and WhatsApp Status. While most of its Snapchat clones haven’t been too successful, Instagram Stories has been a huge hit for the company. With Instagram now featuring almost all the features found on Snapchat and the company adding new features almost every month, the company’s Stories clone took off quite a while ago.
Instagram announced yesterday that the app is being used by users younger than 25 years for more than 32 minutes every day. That’s more than Snapchat, which means its parent company Snap is now in more trouble. Since its IPO, Snap’s stock hasn’t been doing too well. The price for its shares have been going down for a while now, and it took a decent hit earlier this week once Instagram revealed its latest usage data. In fact, Snap’s stock price hit its lowest ever: $12.22 at the time of writing this article. The company’s IPO price was $17.
Snap’s stock price will continue to dip in the coming months unless the company comes up with something to fight Facebook and Instagram. Snapchat’s monthly active user growth per quarter has plummeted to only 5% from the initial 17% and it’ll probably continue to decline in the future. Hardware is a big focus for Snap at the moment, and it’s believed to be planning on acquiring a drone maker sometime soon, too.