Here was the story until today: Instagram stories are taking over while Snapchat is seeing a major decline in usage.
Mark Zuckerberg clearly had a winning strategy when Instagram introduced its new feature that was basically Snapchat-in-Instagram-but-just-better in August 2016. In no time, users began to move to the new Instastories, you didn’t have to set up a new account and seek for a fresh follower base, you could go live, boomerang and even use it hands-free. Instastories made very thoughtful innovations on the existing ephemeral app and it caught fire, as expected.
Then, Mark Zuckerberg couldn’t get enough. He introduced the disappearing messaging feature to Whatsapp too just last week. Although, it is not quite clear what the future of this is, what is clear is the plan. To sweep Snapchat off the market.
We thought so too, until today.
Snap Inc., the company behind Snapchat went public on Thursday at the New York Stock Exchange. The initial public offering (IPO) saw the company’s share price rise 41% from $17 to an opening price of $24 and then to $25 in the minutes that followed. This IPO is the biggest since Facebook’s one in 2012 that made Zuckerberg 19 times more a billionaire than he already was.
The success of this IPO, although many have predicted may not last, means investors still find some things attractive about the company, and essentially the app. Zuckerberg’s Facebook, Instagram and Whatsapp may have dragged Snapchat through hard times but now there’s a lot of hope. In fact, the core of the matter is that Snapchat has just launched itself a bigger threat for Instastories than ever before.
True that Instagram and Whatsapp have successfully duplicated Snapchat’s features but the latter now has enough money to upgrade on its existing features and even create new ones on a scale that Insta and Whatsapp will be clever to not copy.
Now all Snapchat needs is growth, the type that will keep investors happy and tied to the company. Then, the app can improve on its features, which by the way are already fantastic, save for a few tweaks that will have Instastory users trooping back, then it will gave Instagram a run for its money.