Snap Jumps as Instagram's Troubles Could Prove to Be Opportunity

(Bloomberg) -- Could the dispute between Instagram’s founders and Facebook Inc. spell opportunity for Snapchat? Some investors seem to think so.

Shares of Snap Inc. rose more than 3 percent at the open Tuesday after reports that Instagram’s founders are leaving Facebook amid growing tensions. Snap has been struggling in a mobile-advertising market dominated by Facebook and Alphabet Inc.’s Google.

Snap Jumps as Instagram's Troubles Could Prove to Be Opportunity

Daily active users of Snapchat fell for the first time during the quarter ended in June. Meanwhile, Instagram’s growth has been a bright spot for Facebook, especially in the wake of scandals over data privacy, fake news and election interference.

Snap may also be getting a boost from a Los Angeles Times article that suggests that the company’s new image-based shopping agreement with Amazon.com Inc. could lead to a deeper relationship, or even a potential sale, down the road.

©2018 Bloomberg L.P.