Early this morning we saw Snap up 6% and ended the day around 3%. This gain is a result of their announcement of Spotlight. This new feature will add a button in the bottom right hand corner of the home screen that will allow users to see popular and entertaining posts. For more information about this feature, visit snap.com.
Snap keeps turning heads
In the third quarter, Snap’s daily users surpassed 249 million, an increase of 18%. They also saw a jump in revenue of 52%, despite a small profit.
With Snap’s recent acquisition of Voisey, their impressive user growth, and quarterly growth up 180% so far in 2020, there’s no denying that they’re killing it this year.
Investors are hoping that these new features acquisitions and this recent acquisition will continue to facilitate user engagement, something Snap has had no problem doing.
Spotlight is a thoughtful take on TikTok, with important, intentional differences such as losing public commenting. Their payout to Creators is also a signal of commitment. Our only user interface quibble, Spotlight is an option way on the bottom right, far from the default experience of TikTok. Still, it is a more compelling offering than Reels and we think it’ll be a hit, which is great for the stock.
In the last eight trading days, Snap is now on it’s 7th day of gains. If the overall stock market can hold and Snap can hold above $44.50, we may see them going even higher.
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