Wednesday, 10 May 2017

Snap had a strong stock market debut

Snap, the company that owns Snapchat, is posting its first earnings as a public company on Wednesday.

Silicon Valley will be keenly watching - it's the first glimpse at how the company may perform long term, and it comes at a time when the company faces an existential threat from its biggest, perhaps only, rival: Facebook.

When Snap floated on the market in March, its price surged by 44% to give it a value of almost $30bn.

But make no mistake, Facebook's F8 recent developer's conference was an onslaught on Snapchat's future. The disappearing messages app, popular with teens, has seen its core features lifted wholesale by Facebook's engineers and offered to its own 1.9bn users, a figure which dwarfs Snapchat's base.

Facebook's own head of messenger, David Marcus, admitted to me that Snapchat got there first with innovation in ephemeral messaging and augmented-reality filters - but the message from him was essentially: what does it matter? Facebook thinks it can bring the technology to the next level, crushing Snapchat in the process (something you suspect Mark Zuckerberg has had his eye on ever since he was snubbed by Snap founder Evan Spiegel).

BBC    News.