Facebook vs. Snapchat: Who Wins in the Battle of Stock Performance?
Facebook vs Snapchat: Who Wins in the Battle of Stock Performance
In recent years, social media has taken the world by storm. With millions of users around the globe, companies are constantly trying to outdo each other in the battle for the top spot. One of the most heated competitions in this world of social media giants is between Facebook and Snapchat.
Both of these companies have become household names, but which one comes out on top when it comes to stock performance? Let's dive into the numbers and find out.
The Background Story
Facebook was founded in 2004 by Mark Zuckerberg and a group of college friends. It quickly gained popularity and now boasts over 2.7 billion monthly active users. On the other hand, Snapchat was founded in 2011 by Evan Spiegel, Bobby Murphy, and Reggie Brown. It gained popularity among younger generations with its disappearing photo and video messages, and now has over 265 million daily active users.
The Numbers Speak for Themselves
At first glance, it may seem like Facebook is the clear winner in terms of stock performance. It went public in 2012 with an initial public offering (IPO) price of $38 per share. Fast forward to 2021, and the stock is currently trading at over $300 per share. That's a whopping increase of over 700%! On the other hand, Snapchat only went public in 2017 with an IPO price of $17 per share. As of 2021, its stock is trading at around $75 per share, which is still an impressive increase of over 300%.
However, when comparing the percentage growth of stock performance over the past year, Snapchat takes the lead. Despite the COVID-19 pandemic, Snapchat's stock has grown over 150% in the past year, while Facebook's stock has only grown around 40%. This may come as a surprise, considering Facebook's broader reach and longer history in the stock market.
Focusing on the Future
Both Facebook and Snapchat have constantly evolving business models and are always working on new features and updates to attract users. Facebook has made strategic acquisitions, such as Instagram and WhatsApp, to expand its user base and continue its dominance in the social media world. Snapchat, on the other hand, has been focused on innovating and developing new features, such as augmented reality, to keep its audience engaged.
As for future potential, Facebook seems to have the upper hand. Its diverse sources of revenue, including advertising, make it less reliant on just one product. On the other hand, Snapchat mainly generates revenue through advertising and may face challenges in diversifying its revenue streams in the future. However, with its growing popularity among younger generations, Snapchat may continue to see success in the future.
The Verdict
So who comes out on top in the battle of stock performance between Facebook and Snapchat? It's a tough call, but it's safe to say that both companies have seen incredible growth and success since their beginnings. While Facebook may have a larger user base and a longer history in the stock market, Snapchat's impressive growth in the past year cannot be ignored. Ultimately, it will be interesting to see how these two social media giants continue to compete with each other in the future.