Snapchat warns: Our competitors have more money, resources, and users

03.03.2017 / 11:42

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Snap (SNAP) management has a big warning for investors.

“We compete with other companies in every aspect of our business, particularly with companies that focus on mobile engagement and advertising,” the company said in its IPO filing. “Many of these companies, such as Apple, Facebook (including Instagram and WhatsApp), Google (including YouTube), and Twitter, have significantly greater financial and human resources and, in some cases, larger user bases.”

Snap may have debuted 40% above its initial $17 per share price, but the ephemeral messaging company is hardly out of the woods. In the short to medium term, Snap will face increasing competition from rivals, particularly Instagram.

Indeed, Instagram, the Facebook-owned photo-sharing app with 600 million monthly users, targeted Snap head-on last August when it launched Instagram Stories, a feature that very closely resembles Snapchat’s own My Story feature

Instagram CEO Kevin Systrom was the first to admit in a series of interviews around the time Instagram Stories launched that the new feature’s similarity to Snapchat was no mere coincidence. Rather, as he told TechCrunch, Snapchat deserved “all the credit.”

The launch of Stories appears to have benefited Instagram, which reports 150 million people using the feature every single day.

SNAP report 158 million daily active users sending 2.5 billion Snaps each day.

According to a new study released this week by New York City–based research firm 7Park Data, daily active user growth for Snapchat slowed to a 5.3% rate in the four months after Instagram Stories launched.

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Snapchat warns: Our competitors have more money, resources, and users

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