Snapchat's co-founder and CEO Evan Spiegel hit New York City on Tuesday to calm investor fears over a lunch of chicken wraps.
Hundreds of investors, with Snap's signature yellow documents in tow, attended Tuesday's 12:30 p.m. EST lunch New York City meeting in the Mandarin Oriental, overlooking Manhattan's Columbus Circle. Dressed in a suit with cuff links and no tie, Spiegel held court on Snap's cloud spending, and its slowdown of users in the fourth quarter, people familiar with the matter told CNBC.
In particular, investors shared concerns that Facebook's Instagram Stories, which launched in August 2016, posed a threat to Snapchat, the people said. User growth has tapered off in recent months, according to Snap's S-1 filing, and some investors are concerned Instagram is the reason.
The company also explained its cloud strategy, saying that while it looks expensive, building data storage in-house is a race to the bottom as cloud storage becomes commoditized, according to the sources.