Welcome to "#SocialStocks," The Fly's weekly recap of Wall Street's reactions to social media stock news.
PINTEREST SURPASSES SNAPCHAT IN USERS: On January 14, eMarketer’s Amy He reported that Pinterest (PINS) surpassed Snapchat (SNAP) as the third-biggest social media platform in the U.S. in 2019, and it will continue to stay ahead in the coming years, citing the publication's latest social user estimates. With 82.4M users, the visual platform surpassed the messaging app in 2019, after a successful year and IPO in April, she adds, noting that Pinterest saw 9.1% growth last year. In 2020, Pinterest will have 86.0M users, compared with Snapchat's 83.1M, with the gap between the two platforms' user bases continuing to grow through the end of eMarketer's forecasting period in 2023.
TWITTER INITIATED WITH AN UNDERPERFORM AT BERNSTEIN: On January 10, Bernstein analyst Mark Shmulik initiated coverage of Twitter (TWTR) with an Underperform rating and $27 price target as part of a broader initiation of the U.S. Internet sector with a generally positive outlook. Shmulik says that although Twitter is his micro-blogging platform of choice, it remains a niche product with the smallest U.S. user base of the peer group. The analyst adds that recent prioritization on platform health may prove beneficial over the long run, however mindshare spent away from ad product development has left Twitter worst among its peer group, with fewer ad targeting options, lack of self-serve, and limited ad product/formats available for the long-tail of ad buyers.
INSTAGRAM TESTING DIRECT MESSAGES FOR DESKTOP: On January 14, TechCrunch’s Josh Constine reported that Facebook's (FB) Instagram will finally allow users to chat from their web browser, though the launch contradicts Facebook's plan for end-to-end encryption in all its messaging apps. Instagram began testing Direct Messages on the web for a small number of users worldwide, Constine said. Instagram told TechCrunch that, when the service fully rolls out, the social media app's website users will be able to see when they've received new messages, view their whole inbox, initiate new message threads or group chats, send pictures, double click to Like, and share posts from their feed via Direct.
Keywords: snapchat, emarketer, instagram, direct messages, bernstein, initiation