Tag Archives: Snap

Snap acquired FitAnalytics and the fashion recommendation app Screenshop

Snap Inc is expected to report earnings on 22 April, 2021 after the market closes. The stock has skyrocketed since the pandemic started last year. The stock price is around $58 on Wednesday, but a strong set of numbers could push the price even higher.

The consensus EPS Estsimate is -$0,05 (+37,5% YoY), and the consensus revenue estimatae is $740,89 million (+60,2% YoY). Snap is without any doubt a pandemic winner, but the company can remain at this level when countries are opening up again.

Snap`s average revenue per user (ARPU) which increased by 33% to $3,44 is far away from the king of social media; Facebook, which generated a staggering $32 per user in the period. As you can see, there is room for growth in here and innovation can help Snap in the future.

Photo by Thought Catalog on Pexels.com

Earlier this month, Snap acquired the fashion recommendation app Screenshop. A company that analyzes photos to provide clothing suggestions. In March, they acquired FitAnalytics, a machine learning platform that helps customers pick the right clothing size when they shop online.

Both companies will be integrated into the Snapchat app very soon.

Snap is also working with PayPal to expand into new industries like cryptocurrencies and e-commerce. These are growth drivers that can help them both to boost their growth rate make investors and money makers happy.

Snapchat is popular among Gen Z (13-24) and their DAU is growing. DAUs were 265 million in the last quarter, and they are growing in Europe, North America and the rest of the world. Snap offers one of the most-used camera applications globally. 5 million snaps is created daily.

First-quarter top-line growth might have been impacted by lower ad spending. Also, a continued decline in price per ad impression and increasing competition might have weighed on advertising revenues, the only source of revenues for Snap.

Usage of augmented reality (AR), one of the fastest-growing digital technologies during the pandemic, is anticipaated to expand four-fold by 2023.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The king of social media is still Facebook with its 2 billion user base and Snapchat need growth

There is not doubt that the king of social media is still Facebook. But Facebook is not only Facebook. In addition, you have Instagram, WhatsApp and Messenger which means that Facebook accounts for four of world`s largest social media and messaging services.

But what about Snapchat? The stock has declined since it went public and the value of the company is only half of what it was from start. Not only that; Snapchat is far away from its competitors when it comes to MAU`s.

Snapchat has problems. The company is not growing and that will in the long run affect the workers. Some will be frustrated and quit, and that`s the fact right now. The company is laying off employees in one of its most important divisions.

Snap lost high-level executives last year and one of them was Tom Conrad who came from Pandora to join Snap back in March 2016 where he was the music-streaming company`s chief technology officer.

Engineering chief Tim Sehn was resigning the same day that Snap reported dismal third-quarter earnings results. The stock fell more than 5% in one single day when the company announced that their vice president of product is leaving Snap.

On top of that, their competitor Twitter announced they were working on a Snapchat-like video sharing app to compete with Snapchat. Having competitors like Twitter and Facebook with the same core business in a market like it is today is heavy.

So far in their short-lived life, they have faced a lot of challenges. Having executives leaving the company in early stage is one thing, but their redesign has also been negative, and the feedback from their own customers have so far been very negative.

Snaps redesign has made it harder for people to view Stories and that means fewer Snap Ad impressions. Snapchat has «only» 178 million MAUs and thats far away from the social media king. In comparison; Twitter have 330 million MAUs and Pinterest have 200 million.

Snap developed a self-serve platform for buying Snap Ads and that resulted in lower average ad prices. Marketers can now bid what they see as fair value for Snap Ads. At the time when Snap announced the app redesign, Spiegel said, «There is a strong likelihood that the redesign of our application will be disruptive to our business in the short-term.»

Facebook`s giant user base of more than 2 billion enables it to fend off any competition. They continue to expand in North America, Europe and Asia and the rest of the world, so future are still looking bright.

Facebook is set to report fourth-quarter 2017 results on January 31, 2018, and the strength in online and mobile advertising revenues, in addition to expanding Instagram user base will drive top-line and earnings growth.

Snap is expected to report earnings on February 6, 2018 after market close. Earnings forecast for fiscal quarter ending December 2017 is $-0,33.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Investors are concerned about Snapchat`s future

Snap Inc, formerly Snapchat Inc, is a camera company. The company`s flagship product, Snapchat, is a camera application that helps people to communicate through short videos and images as a Snap.

As of December 31, 2016, on an average, 158 million people used Snapchat every day to Snap with family, watch Stories from friends, see events from around the world, and explore curated content from publishers.

The market cap of Snap has fallen dramatically from about $30 billion to $20 billion.

 

 

Many investors are now concerned about Snaps DAUs. Not only that; Snapchat has a lot of competitors and to understand that you have to see it with marketers glasses. They are a copycat and have much lower margins than their competitors.

Facebook has the same application and makes Snap tools like a «me too» product. What they need now is International growth, but why should people use Snap`s tools in an already developed market?

Advertisers spend their money on Facebook and YouTube because they know it works. If Snap want to compete with them they need to burn some cash. A lot of cash. What they need is to look overseas to grab more teens.

Snap dropped down -3,19% on Tuesday and its valuation is about $20 Billion, trading at 17,31. The stock is back to its IPO price and it’s headed for a cruel summer for Snap. In comparison, Twitter`s market cap is about $12 Billion and I assume you know the rest of that story.

Investors are worried about Snaps competition. Especially from Facebook`s Instagram which is the same kind of its popular features.

Snap opened at $24 on its initial day of trading back in March, but surged 44% by the close. They started the IPO price at $17 and now we are back to the start again. At $17.

Barclays, Citygroup and J.P Morgan have lowered the price target on Snap.

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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