Facebook once again fails to buy Snapchat

Friday 11 August 2017 2 months ago 26   New York   Print

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Report  Web Desk : NEW YORK: Facebook once again 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 latest earnings report isn’t helping either. On Thursday, the company said user growth for the April-June period was a paltry 4 percent from the previous quarter. Snap’s stock, already down 44 percent since its initial public offering in May, declined 14 percent, to $11.90, in extended trading after the results came out. That’s less than half of the $24.48 closing price on its first trading day. 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 the struggling 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. 02