This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Instagram Takes a Shot at Twitter, Snapchat, With Instagram Direct (Update 2)

Updated from 12:55 p.m. to include analyst comments in the fourth paragraph.

NEW YORK (TheStreet) -- Instagram has announced Instagram Direct, the ability to send pictures and videos to select users, as the popular social network becomes more like its parent Facebook (FB - Get Report) we well as its chief rivals, Snapchat and Twitter (TWTR - Get Report).

Co-founder Kevin Systrom announced a new feature that makes Instagram more like its big brother Facebook, giving its more than 150 million users a new way to engage with each other.

Earlier this week, Twitter announced the ability to send photos via direct message as opposed to just texts. In contrast, Snapchat users can send messages to select members but they can also mark up the photos. Instagram Direct does not offer that feature.

Sterne Agee analyst Arvind Bhatia noted that it puts Instagram directly in competition with Snapchat. "Snapchat is currently very popular with young teens, an audience that FB would like to re-engage a lot more," Bhatia wrote in the note. He rates Facebook shares "buy" with a $58 price target.



Regarding monetization of the network itself, Systrom said it feels "organic," and is "very happy with the way it's going." He notes that results have been very encouraging so far.

"Instagram is about sharing moments in the world, whether it's North Korea or elsewhere in the world," Systrom said during the question and answer session.

There is only a 15-person limit on the amount of people you can send Instagram Direct messages to, but Systrom said the company would watch use cases, and could potentially alter this over time.

Right now, there is only the functionality of sending one photo at a time, but Systrom noted this is only the first version, and that could potentially happen over time.

Systrom announced that half of Instagram's users use the service daily and this feature allows people who want to see a photo, whether it's based on your dog, food, to see certain photos if you want them to. You can send messages to a group of people by selecting their names. When people view the photos, there's a check mark on the message viewed. If they like the photos, the check mark turns into a heart.

Systrom said that brands could also make use of Instagram Direct. There could be a call to action from Nike (NKE) for running, which could prompt Nike to send messages to those who follow the brand. "It's way too early to think about selling advertisements in Instagram Direct right now," Systrom noted.

It's available in the Apple App Store and Google Play Store today.



--Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
FB $83.30 0.35%
TWTR $50.00 0.16%
AAPL $123.25 -0.80%
GOOG $548.13 -1.30%
TSLA $185.15 -2.80%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs