Pinterest shares quickly fell more than 4% in after-hours trading on Thursday evening when news broke that Facebook has released a competing app.
It's called Hobbi and has officially been released in Spain, Columbia, Ukraine, and Belgium for initial testing.
"Organize your photos into visual collections and see the progress you're making over time," reads Hobbi's app description.
While Hobbi has only undergone a limited release, its feature set makes it a direct competitor to Pinterest — one of the favorite social media platforms around the world for sharing photos, product details, inspirational quotes, and more.
According to Facebook, Hobbi was developed by Facebook's New Product Experimentation Team, which has only been around since July of last year to further tap into consumer-focused apps.
After the announcement was made, a Pinterest spokesperson responded: "Upon first look, Hobbi appears to be a photo saving app that lacks the discoverability, search, and recommendations of Pinterest. As described in the App Store, it’s meant to help you document and remember the things you do, which is about the past, while Pinterest is about discovering ideas and inspiring action for the future."
While this may be a truthful statement by Pinterest now, it's only a prototype. You can be certain Facebook is going to release some pretty powerful features and will have the ability to tap into its massive user base for easy support and quick adoption.
As the evening wore on, Pinterest shares somewhat climbed back, but they are still down a bit from where they were at the start of the day.
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