Snap Inc. (NYSE: SNAP)’s stock received a boost on Thursday after a competing messaging app was shutdown. On Thursday, Instagram announced that it would be shutting down Direct, Instagram’s direct messaging app that was being tested to rival Snapchat.
“We’re rolling back the test of the standalone Direct app,” a spokesperson said in a statement provided to TechCrunch. “We’re focused on continuing to make Instagram Direct the best place for fun conversations with your friends.”
Shares of Snap spiked 7.13 percent to close at $11.42 on Thursday. The stock traded between $10.72 and $11.54 on volume of 35.85 million shares traded. The company recently reported revenues for the first quarter of 2019 were $320 million for the first quarter of 2019, an increase of 39 percent when compared to a year ago. Snap forecasts revenues to be in the range of $335 million to $360 million for the second quarter of 2019, an increase of between 28 percent and 37 percent year-over-year.