An interesting heads-up for businesses considering the best social platforms to use in their digital marketing strategy.
Snapchat can be a handy way to reach certain demographics, but it looks like it is struggling to compete with the big guns of Instagram.
We will monitor their progress with interest.
Snap Chief Executive Officer Evan Spiegel has said neither he nor co-founder Bobby Murphy will sell shares of Snapchat this year, but that failed to soothe investors after quarterly results fell short of expectations. Shares of the Los Angeles company slumped nearly 17%. Snap reported second-quarter revenue below analyst forecasts, sending shares down to $12. Investors worry about the company's ability to vie for users and advertising dollars with rivals like Facebook Inc's FB.O Instagram, which has features similar to the Snapchat disappearing messaging app. Instagram Stories had 250m users as of June, up from 200m in April. "There is a lot of competition and the company has not figured out how to monetise its audience yet," said Salvatore Recco of 50 Park Investments, an investment advisory service. "Until they do, investors will likely continue to be disappointed."