During the period, Snap added about 7 million users - fewer than the roughly 8 million it added during the first quarter of the year, and the 10 million that analysts were anticipating. These notifications - which primarily appear in the Facebook app but can also be pushed to the phone's home screen - can conceivably keep people returning day after day.
The results did not meet Wall Street expectations. Investors have anxious that the app maker won't be able to grow its ad business in the face of mounting competition from Facebook. Instagram in its entirety, meanwhile, had more than 400 million daily users as of February, the last official count. Instagram began mimicking Snapchat's key features past year and boasts a much larger following - 250 million people daily use Instagram Stories, a feature developed by Snapchat that allows users to post disappearing pictures and videos for a 24 hour period. J P Morgan Chase & Co cut their price target on Snap from $24.00 to $20.00 and set a "neutral" rating for the company in a research note on Thursday, May 11th. But it isn't working too well, as daily use hasn't grown much.
Regarding Facebook's ongoing efforts to undermine Snap, some analysts say the social giant's market dominance is overblown.
Before that, Facebook killed Slingshot, another Snapchat clone for sending disappearing messages. All that followed Snapchat's decision to rebuff Facebook's $3 billion offer for the service in 2013. Instagram Stories, in particular, has essentially flattened Snap's meteoric rise, while looking exactly like each other. While Snapchat's audience is mostly teens and young people, on Instagram, anyone might send a "story". Snapchat's sweet spot continues to be millennials but the challenge it faces is to reach an older generation, without alienating its core user base. "ORCRP0017755-topic.html" class="local_link" >Snapchat messaging app breached an all-time low Friday, following weaker-than-expected second quarter financial results.
But Wall Street may want reassurances that are a bit more concrete. NN Investment Partners Holdings N.V. now owns 42,406 shares of the company's stock worth $754,000 after buying an additional 2,530 shares during the last quarter. Rather, they show it's taking longer for the company to deliver on the user engagement and revenue-generation that investors were hoping for when it went public. "And that's going to be reflected in the stock price". Twitter, with its growth barely budging, is not.
While the key measure of daily active users (DAU) was up 4% for Q2, the app still lagged behind its expected growth in users.
On this front, the company has made some strides, eMarketer analyst Debra Aho Williamson said.
These, she wrote in an email, "will help bring in new ad dollars, particularly from small and midsize marketers". "Even though pricing is lower in the short term, as we onboard more advertisers".