Twitter Inc. (NYSE:TWTR) Stock Dips Following Revelations That Snap Inc. (NYSE:SNAP) Has More Daily Active Users
Twitter Inc. (NYSE:TWTR) slumped in the previous session and its stock lost 2.56% closing $30.01. On the other hand Snap Inc. (NYSE:SNAP) continued to maintain its strong outlook by gaining 6.18% in the previous trading session to close the day at $9.10.
The reason behind Twitter losing is the announcement that snap chat had more daily active users than the 126 million users that Twitter boast. Snap has 186 million daily active users which are over 60 million more than Twitter. Similarly, snap’s stock leaped because of the revelations with the company avoiding a decline in Users after its redesign although there is skepticism about the ability of the company to grow.
Snap the next dot com bubble failure
Following the release of the recent results, the snap made losses after losing $0.4 per share. However regardless of losing the company stabilized its user base and maintained its daily active user accounts.
Jay Jacobs, the senior vice president Global X Funds, stated that if you look at the global social media space, Snap has done really well because this is a fast-growing area where you see more users and more money in digital advertisements although at individual e struggled.
Can twitter hang on much longer?
My Jacobs said that the big challenge for Twitter is whether they can clean up their network and create a perfect platform for its users.
Russell Holly, Mobile Nations editor, indicated that Twitter had a rough year and the problem they have right now is growth. The active Twitter users are doing a great job constantly tweeting. However, the company is not doing well with new users.
Snap is not showing much growth and the challenge with them is because they are a niche network popular with a certain generation and they have not extended beyond that like Twitter and Facebook. If you are an advertiser and want to advertise it is a different model you have to create unique content meant for a specific audience.
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