Facebook Swipes Right on Features; Rivals Match and Snap Drop

Facebook (NASDAQ:FB) rivals Match Group (NASDAQ:MTCH) and Snap (NYSE:SNAP) had a tough day at the office, with their share prices crashing 22 percent and 2 percent respectively after Facebook announced new features.

At F8, a Facebook developers conference, the company announced new features, including a new dating platform and AR camera effects for Instagram and Messenger. The new features are expected to roll out in stages later this year.

The major feature was the announcement of Facebook’s dating platform, with the company claiming that people already use Facebook to meet new people, and saying this will make the experience better.

“People will be able to create a dating profile that is separate from their Facebook profile — and potential matches will be recommended based on dating preferences, things in common, and mutual friends,” said the company in a Tuesday (May 1) press release.

“They’ll have the option to discover others with similar interests through their Groups or Events. However, what people do within the dating feature will not be shown to their friends,” the release also states.

Match Group, which owns apps Match, Tinder and OkCupid, among numerous others, reacted sharply to the announcement as it closed the day at US$36.71, down 22 percent. TipRanks has a “moderate buy” ranking on the stock with an analyst target of US$44.36.

Meanwhile, shares of Snap dropped 15 percent in after-hours trading. The company also announced its Q1 results on Tuesday, commenting that it generated US$230.7 million in revenue, which is 19 percent lower than the previous quarter. The company had a total of 191 million daily active users in Q1.

As mentioned, Facebook introduced several new features on Tuesday, including the extension of AR filters. The company said that users will be able to design unique interactive camera experiences, including face filters for their followers on Instagram.

Snap grew to fame with AR filters, but the new features that Facebook introduced on Tuesday will add a new dimension to its platform.

Shares of Snap were trading at US$11.97 in the after-hours market on Tuesday, while shares of Facebook closed the day at US$173.86, up 1 percent.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.