The Feds Are No Longer Investigating Snap
Nearly a year ago, federal regulators at the Department of Justice and the Securities and Exchange Commission opened an investigation into Snap (NYSE: SNAP), focusing on whether the Snapchat parent had sufficiently disclosed competitive risks to prospective investors ahead of its 2017 initial public offering (IPO). Almost as soon as Snap went public, the narrative shifted from one of a social media upstart enjoying blistering growth to one of a company getting eaten alive by larger rival Facebook (NASDAQ: FB).
The social networking juggernaut had been relentlessly replicating Snapchat's most popular features with varying levels of success. When Facebook got it right, however, it brought those copied features to far more users thanks to its massive scale across its platforms like Instagram. The investigation is now over.
Image source: Getty Images.
Source Fool.com
