Another feature from Snap’s SNAP Snapchat has been shamelessly copied by Facebook FB, as Facebook launched “Messenger Day” in the U.S. on Thursday.
The new feature lets users add overlays of frames, visual effects, art and text to photo and video that disappear after 24 hours. This feature is almost identical to Snapchat Stories. (For a deeper look at “Messenger Day,” check out this Zack Article: Facebook Strikes Again with Third Snapchat Clone ‘Messegner Day’)
This isn’t the first time that the social media giant has introduced a feature that mimics its rival Snap.
Facebook isn’t just copying Snap because these features have proven to be successful on Snapchat. An analyst said Facebook could be pushing for an acquisition.(For an inside look at why Snap is so compelling, check out this Zack article: Inside Snapchat: The Biggest Tech IPO Since Facebook)
“One of the key points that the bears on Snap may be missing is that we believe that Facebook would love to acquire the company, and could be willing to pay $20 billion + ($14/share) for the asset," FBN Securities analyst Shebly Seyrafi speculated in a note on Thursday. Business Insider reported.
Usually the copycat doesn’t beat out the originator; however, this time is different. Facebook has the upper hand in this case due to its large user base. Snap reportedly to has 158 million daily users while Facebook has 845 million monthly users and 483 million daily users.
Each time Facebook introduces a new product, the company sees significant user growth. Facebook has also been directing their approach towards video-first across all of their platforms.
Though Facebook outperforms Snapchat in many aspects, buying Snap could remove one of the very few long-term threats that Facebook has. "Several years ago, survey work showed that many teens were disengaging off of Facebook and moving over to Snap, and investors were quite concerned about the long-term ramifications of losing such a key age cohort," said Seyrafi.
Shortly after the market closed, Facebook was flat at $138.25 and Snap was at $22.91 per share.
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