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Is Instagram copying Snapchat?

Snapchat (SNAP) continues to gain momentum, particularly among the younger demographic. Last fall, Facebook’s (NASDAQ:FB) Instagram platform was the most preferred social media platform among teens, garnering 33% of first-place votes. That figure dropped to 27% in the spring, knocking the app from the top spot.

Instead, Snapchat took over the leaderboard, albeit, barely with 28%. Still, it’s an impressive move, considering the same platform garnered just 19% of first-place votes six months prior.

In 2013, Facebook tried to buy Snapchat for $3 billion.

At its latest funding round, Snapchat was worth around $20 billion, while estimates for Instagram have valued the property at more than $30 billion.

Although Snapchat is quickly gaining ground, that hasn’t stopped (and won’t stop) Instagram from being an ad-displaying machine. Similarly, it also won’t stop Instagram from borrowing some of the former’s success.

The picture-sharing leader is launching Instagram Stories with pictures that disappear – similar feature found on Snapchat. “They deserve all the credit,” said Instagram’s CEO Kevin Systrom. He went on to say that, in so many words, every platform is great for something and that borrowing features from each one is both common and acceptable. They’re used in different ways on different platforms.

Source: Seeking Alpha