Snap Inc. SNAP announced that it is set to launch Snap Sports Network, a virtual arena made for Snapchat users to connect with friends and family in a healthy competitive environment.
Approximately 180 million Snapchatters watch sports coverage on a monthly basis. Snapchat is going to cover its own fun and light-hearted games with its huge audience.
It will have games like hobby horsing, professional pillow fighting and more. These games will be introduced by famous creators like Kris London, Rachel Pizzolato, Rachel DeMita and Tony Talks. Brands, including e.l.f Cosmetics, will partner as well as provide in-program sponsorships and product integrations. This will enhance users’ Snapchat sports experience.
Snap Sports Network will comprise six episodes, starting from Jul 19 to Aug 9. Users can watch the weekly content series to see the games unfold and use special Snap Sports Network AR Lenses starting Jul 19.
These efforts are built on Snapchat's latest innovative and relevant feature to provide engaging and personalized experiences for its entire community.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snapchat’s Latest Features to Aid DAU Growth
Snapchat has unveiled some latest innovative and relevant features for its users. These are expected to boost daily active users (DAU) in the upcoming quarters.
DAU at the end of the first quarter of 2024 was 422 million, up 10.2% year over year. Snap added 39 million DAU on a year-over-year basis.
The Zacks Consensus Estimate for SNAP’s 2024 DAU globally is pegged at 443.31 million, indicating year-over-year growth of 7.04%.
This Zacks Rank #2 (Buy) company introduced new features to help users make their accounts more personalized. Users can design their house on Snap Map in infinite ways, include a pet by their side in conversations and send quick snaps or post a story with new options that last 0.1, 0.25 and 0.5 seconds. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In another major update, Snapchat introduced new features to safeguard users from online harms. These new updates include features, such as expanded in-app warnings, enhanced friending protections, simplified location-sharing and blocking improvements. These new updates are designed to protect the community.
Additionally, Snapchat also unveiled a new AR experience powered by GenAI and the company’s AR developer community. GenAI is integrated into Bitmoji Backgrounds, Chat Wallpapers, Dreams, AI Pets and AI Lenses. The company is also introducing a new GenAI Suite to the Lens Studio, helping AR creators generate custom ML models and assets to power their Lenses.
However, snapchat faces tough competition from Meta Platforms META, Alphabet’s GOOGL YouTube and Apple AAPL.
Shares of SNAP have plunged 13.9% year to date against the Zacks Computer and Technology sector’s growth of 21.5%. The stock has also underperformed META, GOOGL and AAPL, which have gained 34.4%, 27.2% and 16.4%, respectively, in the same time frame.
Conclusion
Snapchat’s new updates and latest features are major catalysts for the company. However, it faces tough competition from established players.
Moreover, Snap’s transition to automated or programmatic auction of Snap Ads is driving its advertising revenues. The company’s decision to shift creative tools business to the programmatic platform is also expected to drive ad impressions.
The Zacks Consensus Estimate for SNAP’s second-quarter 2024 earnings per share is pegged at 2 cents, which has remained unchanged in the past 60 days. The consensus mark for 2024 earnings is pegged at 24 cents per share, which has increased a cent in the past 60 days.
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