According a report by Axios, Snapchat has witnessed a 40% increase in user engagement since June, directly contradicting opposite reports that story usage was down 33%. Snapchat launched their Snap Map function in June, of which tech analyst Mark Mahaney said, “If they continue to do that kind of thing, and they need to do it, they’ll escape the kind of the death star that is Google and Facebook.”
The function actually gained popularity during the havoc of hurricanes Harvey and Irma, as users were able to select stories based on location and determine the effects of the storm in real time.
Despite the 40% increase in engagement, rate of growth for Snapchat has decreased; many believe this to be a direct results of Instagram’s stories. Additionally, Zacks notes that “shares of Snap have declined 39.6% since its listing date of Mar 2, 2017, against 11.5% growth of [the general internet software market].”
User growth is key to Snap’s continued revenue stream, and still faces many challenges as it tries to compete with Instagram.