Tag Archives: Snapchat

by | April 21, 2021 · 7:56 pm

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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by | October 24, 2018 · 8:50 pm

Snap Inc was a bubble but is now down to a normal level again

Snapchat was a big bubble when it went public in March last year. It went straight up to about $27, but the story has so far been a disaster. The stock has plummeted. It closed at $6,59 after the bell on Wednesday, down -3,37 percent.

Snap is losing money, and they still have negative user growth. Two things investors don`t like at all. The company will report earnings on Thursday 25, and the reported earnings for the same quarter last year was $-0,32.

If we compare Snap with Facebook and Twitter, the company is now down to earth again. But when it comes to popularity, Instagram is more popular among teenagers than Snapchat. A survey found that 85 percent of teens use Instagram at least once a month. 84 percent use Snapchat.

The company have 188 million Daily users and most of them is kids. Snaps CEO Evan Spiegel admitted the company rushed the redesign, and they didnt spend enough time to test the new platform. It all ended up with angry users.

Snaps market capitalization also fell by about $12 billion after a bad ad campaign with Rihanna. She used Facebooks Instagram to complain about the ad with Snap.

Snap need to report a growth in DAU`s to lift the stock again. A decline in their DAU can make the trend to continue. What we know so far is that this stock is very volatile and you can see how the stock jumped in February and June this year.

Snap Inc is expected to report earnings on Thursday 25, 2018, after market close. The report will for the fiscal Quarter ending September 2018. Earnings forecast for the quarter is $-0,27. Better than last years earnings at $-0,32.

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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by | August 6, 2018 · 9:21 pm

Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices

Snap Inc is set to report second-quarter earnings after the market closes on Tuesday August 7. Historically, the company makes big moves in the wake of its quarterly reports. The average single-day price swing is about 24 percent regardless of direction.

Both Facebook and Twitter faces a challenging time. So do Snap Inc. GDPR pushed Facebook`s user counts down compared with the first quarter and that will also impact Snap Inc. Snap is a small company compared to Facebook, and they will not deal with the same level of scrutiny from lawmakers as Facebook.

EPS in March 2017 came in at -$2,31, but have since then been far better with -$,030 a year later. Analysts on average project Snap second-quarter revenue of $250,4 million, up from $182 million in the same quarter last year.

Facebook have the same tools as Snap and that is hurting their profit. Their biggest competitor is also Instagram which makes it difficult for them to be unique. But Snap launched the second version of its Spectacles product, sunglasses that let people take photos and video and use them within the Snapchat app.

This is also the only move that live up to its claims in the SEC filings that Snap Inc is a camera company.

Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices. Not good in the short run because Snap have only 191 million DAU`s, an increase of 4 million from the Q4 but below estimates of 194 million.

The company has also struggled with the impact of a product redesign in February that was widely criticized. That didn`t help the stock price that crashed to a record low on May 2 after it reported first-quarter earnings.

They missed views on revenue, user growth and several other key metrics, and analysts slashed price targets. The IPO was held in March 2017, and pricing shares were $17. It went up 2,5 percent on Monday and ended the session at $13,05. The stock is down 11 percent in 2018.

Will Snap Inc take a hit from the implementation of Europe`s GDPR (General Data Protection Regulation)? The same types of issues that led to big declines for Facebook and Twitter.

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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by | January 30, 2018 · 4:00 am

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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by | July 25, 2017 · 10:00 am

Instagram`s audience is growing much faster than Facebook`s and Instagram can be Facebook`s best growth engine

Mark Zuckerberg and Facebook started its business 13 years ago on February 4, 2004. Many things have happened since then, and Facebook are now among the biggest corporations with its 2016 Revenue of US$ 27,638 Billion. The success continues.

The social media giant are growing like never before. Ad revenue grew by 51% YoY in Q1 2017. It jumped from $5,2 Billion to $8,85 Billion. Total revenue climbed 49% and earnings went from $0,60 to $1,04.

 

 

It is a big surprise for many to see that Facebook is still adding DAUs and MAUs (active users). Monthly active users have jumped to over 2 billion and their revenue will follow. Many companies are trying to take Facebook`s throne, but the giant are very strong and knocks off all challengers.

Snapchat is the latest challenger, but Facebooks Instagram seems to be strong in this market and will also contribute to Facebooks revenue growth. Instagram has over 700 million MAUs and 400 million DAUs.

Instagram is integrated in the social media business model and they have been selling ads for four years now. Instagrams audience is growing much faster than Facebooks audience and Instagram can be Facebook`s best growth engine.

Instagram is not the only growth engine of Facebook. They also have Messenger, WhatsApp and Oculus VR, and their next step will be to compete with YouTube.

Investors love the social media giant. In January this year, Facebook`s shares were trading at $115 per share and on Monday their shares were trading at $166 per share. The giant have jumped over 40% so far in 2017. Compare that to the rise in the benchmark S&P 500 index during the same period and see for yourself.

Facebook Inc is expected to report earnings on Wednesday 26 after market close. The report will fe for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $1,13 which is a big jump from $0,76 in the same quarter last year.

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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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