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Snap Misses Growth Estimates as Facebook Copying Takes Toll

  • Mobile app reports disappointing daily active users, revenue
  • Shares plummet 18% as concerns about competition intensify
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James Cakmak, Monness Crespi Hardt & Co. analyst, discusses Snap Inc.'s earnings and challenges with Bloomberg's Caroline Hyde and Cory Johnson on 'Bloomberg Technology.' (Source: Bloomberg)

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Snap Inc.’s growth again fell short of estimates, feeding fears that aggressive competition from Facebook Inc. is blunting the younger social-media company’s potential just months after its initial public offering.

The Los Angeles-based company said daily active users reached 173 million in the second quarter, compared with 166 million in the prior period. Analysts polled by Bloomberg had expected 175 million on average. Revenue also disappointed, and the shares tumbled as much as 18 percent in late trading.