Snapchat suffers a stock price drop after news of Instagram Stories hitting new highs, with its daily users increasing and usage steadily climbing…
Instagram Stories just turned 1 and a year in, the feature continues to wreak havoc on rival Snapchat with no end in sight. Instagram business profiles now stand at 15 million, up from 8 million in March.
Snapchat Stock Plunges as Instagram Stories Daily Users Continue to Rise
About half of the business profiles on Instagram produced a story last month, taking the app’s average usage up to 32 minutes per day for users under 25 years old, along with 24 minutes per day for users over 25.
Meanwhile, Snapchat’s active user growth fell sharply from 17.2 per quarter to just 5 percent. And, its stock price dropped from its $17 per share IPO to $13. By contrast, Instagram Stories now claims 250 million DAUs, or daily active users, while Snapchat only has 166 million.
Instagram Direct also now boasts a more prominent position as it claims 375 million monthly users. Instagram Direct is also an ephemeral private messaging tool, giving its users the option to send visual messages which disappear.
However, the inundation of Stories options across so many apps, like Facebook, and others might well be creating user fatigue. Consumers by-and-large already suffer from app fatigue, as only 1 in 10,000 apps developed break-even or are profitable. Fewer the .01 percent of all mobile apps will return a positive ROI, being financially successful by 2018. And, approximately 52 percent of all mobile apps lose at least half their peak users after just three months.