Snap Roadshow Questions Focus on Growth Amid Facebook Rivalry
- Company cites Android app issues for slower user additions
- Instagram is ‘elephant in the room’ ahead of next week’s IPO
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Snap Inc. so far hasn’t been able to tamp down investor concern about user growth.
When asked about a slowdown in new users on its Snapchat photo-sharing mobile app in the fourth quarter, the company blamed a product issue with its Android version, according to investors who attended the company’s initial public offering roadshow presentation Tuesday in New York. Investors were skeptical of that answer, especially in light of rising competition from Facebook Inc., whose Instagram app recently launched a clone of Snapchat’s popular stories disappearing-video feature. Instagram’s stories has quickly amassed 150 million daily active users, just below Snapchat’s 158 million.