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Snap stocktwits12/13/2023 This in turn has resulted in accelerating its own eCPM (revenue per impression) by 50% to 100% over the past year and powered revenue growth which has climbed CAGR over the past two years to 2020. However, a range of successful investments to improve ad targeting and ad measurement capabilities in the last two years, coupled with the restructuring of its sales team to focus on becoming sector specialists (away from being regional specialists) has seen SNAP increase advertisers ROI on its platform. Given its strong focus on privacy and limited quantum of personal information, users were willing to share on its platform, investors were skeptical of SNAP’s monetisation capabilities vs Facebook in the past. Even though a challenger to Facebook (FB), SNAP has a strong track record of successful innovations, showcasing multiple successful product introductions which now mostly have all been encroached upon by rivals such as its disappearing messages, Stories, vertical video format and AR lenses to list just a few. We see Snapchat ( NYSE: SNAP) as a leading innovation factory in the social media space, benefitting from best-in-class growth profile, a large and sizeable TAM, strong industry positioning, and prescient co-founders, spearheaded by CEO Evan Spiegel and CTO Bobby Murphy. The company also shelved several projects during the year, including its photo-taking drone and Snap Originals premium shows.NYCstock/iStock Editorial via Getty Images Investment thesis: When the innovation factory gets its growth playbook right - initiating coverage at "buy" Snap announced in August it would lay off 20% of its workforce of over 6,000 employees. But its simplicity also meant that companies could quickly pause campaigns in such a way as to severely affect Snap's finances. Snap debuted its subscription service last summer, pitching it as a way for users to access pre-release and exclusive features for $3.99 a month.Īs executives told analysts several times last year, the company's online ad platform was built to be easy to use and to enable brands to quickly launch campaigns. It said its Snapchat+ service now has over 2 million paying subscribers as of the fourth quarter. The company said it's refocusing investments to concentrate on growing its community and engagement, accelerating and diversifying its sales growth and developing augmented reality technologies. The stock has recouped some of its losses, rising 29% in January, along with a broader rally in the tech sector. Snap's stock plummeted 81% last year as the Nasdaq Composite had its worst year since 2008. Pinterest, which releases results next week, fell almost 5%. Meta shares dropped 2% after Snap's report. Facebook parent Meta reports fourth-quarter results on Wednesday, followed by Google parent Alphabet and Amazon on Thursday. Investors will get a clearer picture of the state of that market later this week. It's an ominous start to fourth-quarter earnings season for ad-supported internet companies. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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