I’m not sure how anyone can bet confidently on Snapchat winning this battle.
Adam Haworth

Interesting rebuttal. I completely agree that the younger generation (Generation Z) isn’t leaving Snapchat in the droves. This past quarter Snapchat’s reported that daily active users (DAU) grew from 122 million (Q1 2016) to 166 million (Q1 2017). However with social media (SM) companies the number to watch for is ARPU: Average Revenue Per User. With SM companies the largest component of ARPU typically comes from advertising. So for SM companies it is important to monitor the average ad revenue per user. For Snapchat ARPU decreased 14% from Q4 2016 to Q1 2017. A lot of this is attributed to the fact Facebook’s Instagram stories did a better job of Snapchat’s core competency than Snapchat themselves. Since they are now a public company if they want to remain relevant and not have “death by competition”, Snapchat is going to have to continue to product innovate and determine how to increase ARPU.

I wrote a short article (2 mins) on the concerns Snapchat is presently grappling with and what aspects investors/ users should be on the lookout for. https://medium.com/verdant-analytics/even-a-snap-filter-wont-make-this-look-pretty-ddaff627cd4c