The firm is bearish on Snap's ability to monetize and sees increasing pressure from Facebook's (FB) - Get Report Instagram, which is still outpacing Snap. Cleveland Research sees Instagram ad-tech advantage becoming a greater and more material concern for Snap.
Earlier this year Facebook basically copied Snapchat's video stories feature, which allows users to capture moments and upload them temporarily on the platform. This feature has become extremely popular on Instagram and resulted in more daily users than Snapchat, CNBC noted.
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