Snap Share Prices Skyrocket Following App Redesign

09 February, 2018, 05:24 | Author: Salvatore Jensen
  • Michael Loccisano  Getty Images
Evan Spiegel

"With our plans for user growth, augmented reality, and content in 2018, I have never been more excited about the future of our business".

Snapchat now has 187 million daily active users, which is higher than 184.2 million expected from analysts.

"Management is effectively entrenched, and shareholders are entirely disenfranchised because Snap's publicly traded shares lack any voting rights", he added.

"Our business really came together toward the end of a year ago", Evan Spiegel, the cofounder and CEO of Snap, said on a conference call with analysts Tuesday.

However fast Snap is growing, it still has the world to conquer. To that end, Snapchat has been teasing a redesign of its mobile app aimed at attracting older users by making it easier to use. Chief Executive Evan Spiegel did not announce a release date Tuesday, though he did say the new version was now in the hands of about 40 million people and should roll out this quarter.

Snapchat's daily active users rose to 187 million in the quarter ended December 31 from 178 million in the third quarter, beating analysts' average expectation of 184.2 million users, according to financial data and analytics firm FactSet. DAUs for all of 2017 rose 18% from a year earlier, reversing a trend of slow growth for the social media platform.

Instagram, which has over twice the number of daily users that Snapchat has and is backed by Facebook and its huge amounts of cash, has been a threat to crush its rival through copying its features like disappearing slide shows and photo filters.




Snapchat is banking on smaller businesses to advertise on its platform as ad revenue has almost doubled in that market. He has also developed tools to monitor brands' early adoption of live-streaming apps, compare Yahoo's and Google's search designs and examine the NFL's YouTube and Facebook video strategies.

Spiegel said 90 percent of Snap ad revenues now come from its automated platforms, and said this system is likely to help boost growth. Analysts had been expecting a loss of around $409 million, on about $255 million in revenue. Snap lost $443 million last quarter, nearly the same amount it lost in Q2 and up considerably from the $124 million it lost in Q3 the year prior.

To the surprise of investors, Snap reported that both its user growth and revenue growth are accelerating.

Overall, Snap has far fewer users than Facebook, but its growth is faster and more constant especially in North America. Stocks of Snap Inc. went up 25 percent to around $17.60 per share, which was more than its IPO price.

According to TechCrunch, Snapchat said: "Updates as big as this one can take a little getting used to, but we hope the community will enjoy it once they settle in". A drop in quality takes users' attention elsewhere and Snapchat is now facing that challenge.

A Kantar TNS study from September 2016 found that Snapchat use in the U.A.E. sat at 53%, up from 28% in 2015. It could also be a great opportunity for marketers to reach and engage their audiences with well-targeted promoted content, while positively impacting Snapchat's bottom line.

Recommended:



Popular

Stormy Daniels warns Kylie Jenner about her chosen baby name
She congratulated Jenner, then warned her: "Hang on to your heart, because little girls named Stormi are known to cause trouble". Travis Scott surprised Kylie Jenner with a gift of xx following the birth of their first child Stormi Webster .

Olympic team's chefs mistakenly order 15000 eggs
But a mistake occurred when 15,000 eggs were delivered to their kitchens, instead of the 1500 intended. Norway has a total of 109 athletes competing in the 2018 Winter Olympics in PyeongChang, Korea.

Volatile stocks spark record one-day rise in fear index
Many traders will use a combination of moving averages with different time frames to help review stock trend direction. As of this writing, both XIV and SVXY were halted for trading, but were expected to resume trading later in the day.

Russian Federation to Contain Iranian-Turkish Dispute in Syria
Cavusoglu emphasized "we believe that we must stand against conspiracies that are aimed at undermining the territorial integrity of the countries of the region".

Winter Olympics: Shani Davis not expected to march in opening ceremony
Voting for Hamlin and speedskater Shani Davis was tied for the honor, which led to the victor being chosen by a coin toss. "I am an American and when I won the 1000m in 2010 I became the first American to 2-peat in that event", Davis tweeted.

Trump Wants to Display Military's Might With Grand Parade
Bush's "Mission Accomplished" stunt was crafted to celebrate, quite inaccurately, the end of "major combat operations" in Iraq. The US capital has previously only held large military displays to mark significant occasions such as victories in war.

Unusual ancient spider with tail discovered by scientists in Myanmar
Like today's horseshoe crabs and ginkgo trees, it was a holdover from an earlier period in evolutionary history. The new species was discovered in the jungles of Myanmar, which yields almost 10 tonnes of amber every year.

Koeman named new Netherlands boss
Koeman's first press conference was immediately announced by the KNVB, and he was set to speak about his new role at 3.30pm GMT. Koeman won Euro 88 as a Netherlands player, part of a team that also included Ruud Gullit, Frank Rijkaard and Marco van Basten.

What To Expect From The PS4 5.50 Update
On the user interface front, two new tabs are added to Library to make it easier to see which apps you've installed and bought. The Friends tab in the Quick Menu now lets you quickly access specific friends, and it'll also show which of them are online.

Snap Revenue Surges 72% on User Growth, Advertising Gains
Chief executive Evan Spiegel said Snap had executed its 2017 plan to improve quality, performance and automation well. In the year-ago quarter, Snap Inc (SNAP)'s revenue $165.7 million.