As the shares of Snap Inc — the parent company of Snapchat app — dropped nearly 4 percent on Wednesday, analysts said the company’s daily active user growth might slow down in the second quarter this year. Also Read - How two of the richest men in the world are fighting over your internet connectionAlso Read - Facebook Messenger introduces a new Split Payments feature: How to use it
Citing app download data from SensorTower, a mobile app store marketing intelligence platform, Marketwatch quoted the analysts as saying that worldwide downloads of Snapchat have declined 22 percent year-over-year in the first two months of the second quarter.
“This is a worrisome trend, especially when compared with Snap competitor Facebook, which saw Instagram downloads increasing year-over-year in that same time,” the analysts were quoted as saying.
In Snap’s first quarter, it reported 166 million daily active users, a growth rate of 5 percent from the previous quarter. From the third quarter to the fourth quarter, Snap’s daily active users had increased by 3.2 percent. ALSO READ: Apple iOS 11 s screen capture feature could be nightmare for Snapchat users
Facebook, which has copied features from Snapchat, has Instagram‘s Stories feature that has reportedly surpassed its competitor in daily active users. The declining downloads in the second quarter is felt particularly in Apple App Store, where the analysts say they have dropped 40 percent in those two months. ALSO READ: Facebook, Instagram lead to a decline in Snapchat downloads: Report