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Snapchat cracking under rivals’ pressure

STRUGGLING: Snapchat

CONCERNS ARE rising about whether Snapchat can cope with fierce competition from Facebook after weak results on the stock market hammered its share price.

Snap Inc, the social media app’s parent, revealed user growth and revenues were weaker than expected in the first quarter as it dropped to a $2.2 billion (£1.7 billion) loss, causing the share price to tank 23%.

Analysts put the slowing growth down to competition with Facebook, which owns rival services Messenger, Instagram and WhatsApp.

Speaking on the figures, Richard Holway, chairmen of TechMarketView said: “The ‘problem’ with Snap is that its features are so easy to copy. Facebook’s Instagram already has 200 million users of its Snap look-a-like Stories feature.”

Edison analyst Richard Windsor said: “Facebook can easily afford to outspend Snap.”

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