my friend thinks i have a confidence problem when it comes to this guy i like. Can u help me out?

okay theres this guy he's like become so close to me. i met him like the 2 nd week of school. but i starting liking him and i think he likes me too. but on friday we were hanging out and joking .when 4 girls from his spanish class came over and started hugging and talking to him. i felt like i couldn't compete so i left him alone. my friend zei i shouldn't have done that because i made him think i wasn't into him. but how can i compete with some of the most populair girls at our school.help!!!!!!!!