Snap to it

Northwest Arkansas Democrat-Gazette - - ONLINE EXTRA -

Will the so­cial me­dia dar­ling Snap wind up more like the high-fly­ing Face­book or the trou­bled Twit­ter?

In­vestors are won­der­ing as Snap pre­pares for its ini­tial pub­lic of­fer­ing of stock next month. Signs point both ways.

Snap is the owner of

Snapchat, a photo- and video-mes­sag­ing app best known for images that dis­ap­pear au­to­mat­i­cally af­ter view­ing.

Like Twit­ter, Snap has never made a profit, while Face­book earned $1 bil­lion the year be­fore it went pub­lic. On the other hand, Snapchat is more like Face­book in that its users are highly en­gaged, many check­ing in daily.

That said, Snapchat’s growth in daily users has slowed down con­sid­er­ably in re­cent months, caus­ing some con­cern that the com­pany’s de­cline may have al­ready be­gun. The slow­down came as Face­book’s In­sta­gram in­tro­duced “sto­ries,” a clone of a Snapchat fea­ture that lets users post a loop of pho­tos and videos that dis­ap­pear af­ter 24 hours.

Chi-Hua Chien, man­ag­ing part­ner at Good­wa­ter Cap­i­tal, says reignit­ing growth will be Snap’s big­gest chal­lenge.

Snap man­aged to re­verse an early 2015 slow­down af­ter in­tro­duc­ing the sto­ries fea­ture. Can the com­pany do it again?

Sources: Com­pany fil­ings; Fac­tSet Bar­bara Or­tu­tay; J.Paschke • AP

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.