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Saturday, November 25, 2017

Snapchat’s growth stalls in Facebook’s shadow in 1Q report

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By Associated Press

Facebook has been bent on copying Snapchat ever since the social media giant tried unsuccessfully in 2013 to buy what was then an ephemeral photo-messaging app.

FILE - In this Thursday, March 2, 2017, file photo, Snapchat co-founders Bobby Murphy, left, and CEO Evan Spiegel ring the opening bell at the New York Stock Exchange as the company celebrates its IPO. Since it couldn’t buy its smaller rival, Facebook is bent on copying Snap to death. Snap Inc., the company behind Snapchat, meanwhile, is intent on forging ahead against its much bigger rival, courting older users, keeping young ones and along with them, advertisers. (AP Photo/Richard Drew, File)

In this Thursday, March 2, 2017, file photo, Snapchat co-founders Bobby Murphy, left, and CEO Evan Spiegel ring the opening bell at the New York Stock Exchange as the company celebrates its IPO. (AP Photo/Richard Drew, File/ Manila Bulletin)

Now, the company behind Snapchat is hoping to copy some of its larger rival’s own practices, at least with respect to courting new users—and, with them, advertisers.

But it’s not going so well.

On Wednesday, Snap Inc. announced a massive loss and a continued slowdown in user growth, while revenue fell below Wall Street’s expectations in its first earnings report as a public company. Just a week earlier, Facebook posted double-digit revenue growth for the first quarter — much as it has consistently since its initial public offering in 2012.

Snapchat reported 166 million daily active users in the latest quarter, an increase of just 36 percent from a year earlier. In its first post-IPO report in 2012, Facebook also disappointed investors when its daily user base grew by only 32 percent. But at that point, Facebook had 552 million regular users, more than three times as many as Snapchat.

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