Instagram says it continues to see daily user growth despite a flap over its terms of service that prompted threats by some users to drop the service.
The Facebook-owned social network was responding to a New York Post report that said the popular photo sharing app had lost a quarter of its daily users as a result of Instagram's controversial move to change its terms of service.
The change would have allowed the social network to let companies pay to place users' photos in advertisements that would run within the Instagram app. Instagram withdrew the change after protests from Instagram users, but some users still vowed to drop the service.
The New York Post, citing information from AppData, a metrics website, said that despite the reversal, Instagram lost 4 million daily users. That led Facebook's stock to fall nearly 3% within opening minutes of Friday trading.