Sign up for a daily newsletter defining what matters in business and markets


Twitter vs Snapchat

Eugene Hoshiko

Fair or not, the two companies are increasingly being compared to each other as Snap prepares to go public and Twitter looks for a big bounce in value:

  • Both rely on convincing people they can massively grow their user.
  • Both rely on ads alone to make money.
  • Both are money-losers.

Recode: "Twitter's advantage is that it has a proven business. Sure, Snap is hot and exciting and young. But Twitter likely brought in more than $2.5 billion in revenue last year. The company has survived for a decade, and President Trump's obsession with the product means it has never been more culturally significant."

But then there's the business: "Even Donald Trump Can't Save Twitter," which released earnings earlier today, per the Wall Street Journal's "Ahead of the Tape" column: "[A]s has been made clear by Twitter's recent results and its battered stock price, there is a clear distinction between publicity and profitability. Monthly active-user growth continues to slow. Twitter is still losing money ... It has had constant churn in the C-suite."