A painful morning gave way to a more pleasant afternoon in the stock market today, with substantial gains for all the major indexes. Recent data has sowed fears of a looming recession, but investors were able to shake that off on Thursday following two days of broad losses.
Unable to rise with the market were Snap (NYSE:SNAP) and GoPro (NASDAQ:GPRO). The social media company slumped after a new competing app emerged, and the action-camera maker tumbled after its latest product launch didn’t go according to plan.
Snap gets more competition
Snap is no stranger to having the core functionality of its Snapchat app copied wholesale. The Stories format, which features multiple images and videos that disappear after a day, was introduced to Snapchat in 2013. A few years later, Facebook added the same feature to its various apps and quickly grew a massive user base.
Facebook is at it again, this time with a new app focused on sharing images with close friends. The social media titan announced Threads from Instragram on Thursday, a stand-alone app that allows a user to share photos, video, messages, and stories with those on their close-friends list on Instagram. Shares of Snap were down 4.5% at 1:50 p.m. EDT.
Facebook claims that Threads is “the fastest way to share a photo or video with your close friends on Instagram.” Snap has long emphasized speed as a core selling point of its Snapchat app. From its S-1 filing: “When we launched Snapchat in September 2011, it was one of the fastest ways to send a photo on a smartphone.”
Yet another app that directly competes with Snapchat will make it even tougher for Snap to eventually turn a profit. In the first six months of 2019, the company recorded a net loss