According to Recode, a new comScore report revealed that while Snapchat’s stock is struggling due to increased competition from Facebook, it is holding off Facebook-owned Instagram in the key area of younger users. However, Instagram is still bigger overall, with more than 400 million daily users worldwide. Snapchat currently boasts 173 million.
Of the top ten most popular apps based on penetration, Facebook owns three (Facebook, Facebook Messenger and Instagram), and Google owns five (YouTube, Google Search, Google Maps, Google Play and Gmail).
Just a few days ago, an eMarketer report predicted Snapchat will be bigger than Facebook and Instagram in the U.S. by the end of 2017 among 12- to 17-year-olds and 18- to 24-year-olds. Facebook is currently the most popular app in the country among those 18 and older, and is used by 81 percent of mobile app users.
This is all good news for Snap. Its shares have not had an easy time since the company went public in early March. In July, shares broke below their initial public offering (IPO) price, and investors have been concerned over user growth (or the slowing thereof) and the fact that Snapchat has not been, and may never be, profitable. In addition, Facebook is becoming more competitive with Snap, announcing that Instagram debuted its own face-tracking options with a growing roster of Snapchat-like details.
But a big part of Snap’s promise over the last year was that it could capture young, teen users — a fact that could ease investors’ minds as these new stats show it’s competing with major players in some key demographics.