After a recent roadshow by Snap Inc failed to satisfy investors (many of which expressed concern for the media giant's prospects), Snapchat's future has been surrounded by an atmosphere of uncertainty and pessimism amidst accusations of overpricing shares as profits enter free fall. With a significant player in the social media battle royale barely able to compete, a power vacuum has appeared in the social media market. But who will fill the gaping divide? The most likely answer at the current moment is Facebook, Snapchat's bitter rival.
Why is Facebook predicted to gain from this?
Facebook has been growing exponentially for many years. With the company declaring a year on year revenue growth of 50.8% placing it far ahead of rival tech giant Apple at a measly 3%. With a steady upward projection such as this, Facebook can only be expected to exert even greater dominance over social media. With Snapchat out of the picture for the foreseeable future, this presents Facebook with an ideal opportunity for expansion.
Where will Facebook go from here?
Mark Zuckerberg has been criticized for Facebook's implication in the recent fake news scandals and his less than lucrative acquisition of Oculus. Despite these small blunders, Facebook boasts a working capital of 20 billion USD, allowing it to finance growth into virtrually every aspect of digital media.
Messenger and Instagram are already among the most used apps by young people, with their popularity estimated to grow. Oculus provides a beachhead in the market for commercial VR which Facebook is likely to exploit.
The changing digital landscape
Instagram has already assimilated many of Snapchats features, making it unlikely that Snapchat will bounce back any time soon.
However, this represents a vast shift in the social media ecosystem. New opportunities will likely breed innovation but it is undeniable that Facebook is and will remain a titan of its industry as it diversifies into all aspects of technology and digital media, adding to its exhaustive list of subsidiaries.
