Following a disappointing earnings report on Tuesday, Snap’s shares dropped nearly 15 percent on Wednesday as shareholders appear to be losing faith in the company. While Snapchat is still immensely popular among teenagers, the app has yet to break through to the mainstream and continues to struggle with tepid user growth.
One of the biggest problems for Snapchat is the fact that it is beaten at its own game by its most powerful competitor. Facebook introduced clones of Snapchat’s popular Stories feature to Instagram, WhatsApp and Messenger last year and earlier this year, respectively, and this copycat approach appears to be working out.
According to Facebook’s CEO Mark Zuckerberg, both Instagram Stories and WhatsApp Status, as the Snapchat-like features are called, now have 300 million daily active users or nearly double the total number of daily users Snapchat has. Like Snapchat, Instagram Stories and WhatsApp Status let users apply filters and stickers to videos and photos that disappear after 24 hours.