On Snap IPO roadshow, investors worry about “elephant in the room”

And that elephant is named Instagram, Bloomberg reports. Ahead of its IPO next week, on Tuesday investors at the company’s roadshow presentation in New York voiced concern over the future of Snapchat’s user growth, given that Facebook-owned Instagram has been so successful in cloning Snapchat’s time-limited video sharing features. The investors worry that Instagram is the reason for Snapchat’s recent slowdown in new users, and not, as Snap insists, a product issue with the Android Snapchat app. One thing investors did like, however, was when Snap CEO Evan Spiegel said that the company is open to building its own data centers in the future.MG