Personal Finance

Why Snap Stock Jumped Today

Examples of Snap Lenses

What happened

Shares of Snap (NYSE: SNAP) have jumped today, up by 5% as of 3 p.m. EST, after CEO Evan Spiegel made some positive remarks at a tech conference. The executive said an improved version of Snapchat on Android is expected to be deployed by the end of the year.

So what

Speaking at the Morgan Stanley Technology, Media, and Telecom Conference 2019, Spiegel said that the revamped Android version is expected to be released by the end of 2019. The Android version of Snapchat has long suffered from performance problems compared to the iOS version, which has limited the Snapchat parent's ability to grow its user base, particularly in emerging markets.

Examples of Snap Lenses

Image source: Snap.

When asked by an analyst what might drive user growth for Snapchat in 2019, Spiegel responded:

Android is absolutely critical to our strategy. There's something like 2 billion Android users that don't use Snapchat. A couple percent of those I think would be well-received by all of us. So that's something we're definitely excited about in terms of the future opportunity. And that explains a lot of the delta, as I mentioned, between the strength we see in core markets -- like U.S., U.K., France -- and international markets -- like India or Indonesia, where the vast majority of users have Android phones.

Now what

Historically, Snap has prioritized the development and performance of Snapchat on iOS, a focus that has held back its growth potential, as Android is the most popular mobile platform on the planet. The company's daily active user (DAU) base stagnated throughout much of 2018, but appeared to stabilize in the fourth quarter .

"Our engineering team remains focused on rebuilding our Android application to improve performance and quality," Spiegel said on the earnings call earlier this month. The company's progress with its Android app will be a key storyline for investors to watch in 2019.

10 stocks we like better than Snap Inc.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Snap Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of January 31, 2019

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SNAP

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More