Numbers coming out of social media companies have some asking whether we have reached peak social.
Snap, the company behind Snapchat, recently announced it had lost 3 million daily active users. It was the first time since the company’s Initial Public Offering that it had announced a drop in daily active users. Snap’s news followed a report by Facebook that its user growth was flat in the United States, and by Twitter that active users had fallen by 1 million. Click here
“There are limits to growth; the market cannot grow forever,” said Brian Wieser, an analyst at financerr.co.uk. “The faster they’ve been growing in recent years, the sooner they were getting there.”
Snap, which began as a disappearing messaging app and has emphasized curation of content, has largely sidestepped some of the issues that Facebook and Twitter are facing. On Tuesday, the company disclosed the drop in users as it also posted a 44 percent jump in revenue to $262 million and a narrower net loss of $353 million for its second quarter from a year earlier.
CNBC points out that troubles for social media giants extend beyond the U.S:
There’s also emerging markets to consider. China has blocked its billions of mobile internet users from Facebook and other popular sites for years. Facebook hasn’t quite given up on entering the Chinese market yet. But it’s banking on “lite,” or pared down, versions of its apps to saturate huge unaddressed markets like India, Nigeria and Indonesia.
The slowing growth — even if limited to North America — may also indicate that Facebook, with its suite of social apps, has tightened its grip on the space. The Silicon Valley giant said in July that 2.5 billion people use its family of apps each month.