Snapchat’s Twitter Problem

Is Snapchat destined to become more like Facebook or Twitter?

That is to say, can it become a service that will be used by 1.4 billion people, like Facebook, and have a market capitalization of $262 billion? Or will it be stuck at around 300 million deeply-engaged users and a market capitalization of $20 billion, not much above Snapchat’s most recent valuation of $16 billion. There are striking parallels between Snapchat and Twitter that suggest Snapchat could run into some of the same user-growth problems.

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The pressure, then, is on Snapchat to build the app in a way that takes it beyond a niche service that owns a desirable demographic, to something that’s more universally used—even if that version is liked by many rather than loved by some.

Kevin Swint commented on this article.
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Young people are finicky and could easily move onto something else, making a millennial-only strategy one that Mr. Spiegel may not want to pursue.