snap stock price

Engagement is high on Snapchat, but not in the right areas.
Snap has a monetization problem that has nothing to do with competition from Facebook.
Watch Snap’s stock price move in real time here.

Snap has a big problem, and it’s not named Facebook.

Since its initial public offering in March, Snap has mostly traded below its $17 initial price. Some investors have worried that the company’s struggles have been compounded by Facebook’s tendency to copy major features of Snapchat into its own platforms. But Lloyd Walmsley, an analyst at Deutsche Bank, doesn’t think this is the case.

“Impressively, Instagram Stories had no discernable effect on engagement with Snapchat among surveyed daily active users, with 86% of respondents indicating they use Snapchat ‘about the same’ or ‘more’ because of the platform,” said Walmsley, addressing a survey of 525 regular Snapchat users he performed.

Walmsley found that Snap’s young user base is as enthusiastic about the app as ever. They don’t see themselves slowing their near-daily usage of the app, and 60% said they had even increased their usage of the app in the last nine months, bucking the notion that Instagram has been drawing Snap’s users away from the platform.

This suggests that the …read more

Source:: Businessinsider – Technology

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