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Instagram Stories Surpasses Snapcha: Is Snap Already Dead?

Joseph Lu

It looks like Facebook’s FB Instagram is just a few steps away from winning the war against Snap Inc. SNAP.  Instagram announced today that it now has over 200 million people using its Stories feature daily, up from the 150 million announced in January.

Shares of Snap have already dropped more than 4% since Tuesday when Instagram launched its latest Snapchat-like messaging feature for Direct Messaging. Today’s news sent the stock sliding in morning trading, but it finished relatively flat on the day.

Instagram’s newest update allows users to individually or group message disappearing photo or video in the chat section, in addition to its previous texts and re-shares function. The update is very similar to Snapchat’s direct messaging feature.

The announcement on surpassing Snapchat’s daily users shows that being the first doesn’t always mean you will last. Instagram launched the Stories feature in August last year. It shows not only a tremendous growth of the photo-sharing app but also Facebook’s ability to copy a successful format and make it more appealing than its originator.

Along with delivering the devastating news to Snap’s investors, Instagram introduced new “sticker” tool and Geosticker for selected cities to make it more engaging for its users. Users can now apply their selfies as a sticker for sharing or include them in their photo or video.

Facebook and Instagram have been stealing Snapchat’s best ideas and consistently outperforming its originator. With Instagram’s user daily users topping Snapchat’s, it is hard not to wonder if the war between the two companies is coming to an end soon.

Despite the remarkable growth of Instagram, Facebook closed the day with a 0.14% drop to $139.39 per share.

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