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.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public. Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Facebook, Inc. (FB): Free Stock Analysis Report
Snap Inc. (SNAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research