Business Wars Facebook vs Snapchat - Stock Market Tailspin | 5
Oct 16, 2019
In April 2017, Mark Zuckerberg launched face filters to challenge Snapchat directly. Meanwhile, Snapchat's founder Evan Spiegel grappled with user loss and a slumping stock price. A redesign attempt backfired spectacularly following Kylie Jenner's criticism, leading to even greater market fallout. As Facebook faced a data scandal and scrutiny from Congress over user privacy, the competitive landscape shifted dramatically, leaving both giants wrestling with their public images and future strategies.
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Zuckerberg's Challenge
- At Facebook's F8 conference, Mark Zuckerberg unveiled a new strategy targeting Snapchat.
- By open-sourcing face filters, Facebook aimed to surpass Snapchat's popular feature, lenses.
Snap's Disastrous Quarter
- Snap Inc. posted disastrous first-quarter results, including a $2.2 billion loss and missed revenue targets.
- This led to a 23% drop in share price, causing concern among investors about Facebook's competition.
Analyst's Concerns
- An analyst questioned Evan Spiegel about Facebook's camera company strategy and its potential threat to Snapchat.
- Spiegel responded that competition is inevitable and that every company will need a camera strategy.