Facebook's (FB) Instagram photo- and video-sharing service on Thursday unveiled a private, chat-like messaging service.
The new Instagram Direct service should help Facebook and Instagram combat Twitter (TWTR), Snapchat and other emerging rivals, analysts said. Privately held Snapchat recently turned out a $3 billion buyout offer from Facebook, it was widely reported.
The new messaging service will be available for both Apple (AAPL) iOS and Google (GOOG) Android devices, Facebook said in a blog .
Instagram Direct lets users send posts with photos or video to up to 15 people.
The news helped boost Facebook stock, already helped by word late Wednesday that it will be added to the widely tracked Standard & Poor's S&P 500 index, as well as its S&P 100 index, effective Dec. 20.
Facebook stock was up 4.5% in afternoon trading in the stock market today, near 51.60. Facebook, boosted by rising mobile ad revenue, has seen its stock double since July, touching an all-time high of 54.83 in October.
One key to Instagram Direct is that users send photos directly to a selected individual or group rather than sending them publicly to everyone who follows them, said Arvind Bhatia, an analyst at Sterne, Agee, in a research report.
"The new feature will help Instagram to directly compete with Snapchat," wrote Bhatia. After Facebook's recent failure to acquire Snapchat, this latest move is "not surprising," he said.
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