Snap Stock Gains from the Launch of New Feature
BUZ INVESTORS Snap Ups the Ante (NYSE:SNAP) has had enough of Facebook Inc (NASDAQ:FB) building its clones over and over again. Following last week’s introduction by Facebook of new “Snapchat” features across its apps, Facebook stock had gained and Snap stock had gotten hit. But as we said earlier, Snap Inc needed to launch some new feature or product soon to reassure investors that its success was not just a flash in the pan. And the “camera company” did so on Friday by announcing a search tool for its “Stories” feature. Investors seemed to like it; Snap shares ended Friday’s session with a gain of 1.4%, closing at $22.53.
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Snap Ups the Ante
Snap Inc has introduced a search tool for its most talked about Stories feature. This is to make content easily accessible to more users and thereby grab more eyeballs and engagement time. Using machine learning to analyze information in its myriad posts full of data and pictures, the new search tool shows information to users about the scene at a nearby bar or a local basketball game. Until now, there was no option for users to do this as they only saw the curated features of Stories from the people they followed or whatever Snapchat showed them. (Source: “Snapchat Launches New Search Tool in Quest for More Engagement,” The Wall Street Journal, March 31, 2017.)
Snap Inc Needs to Be More Agile
Facebook copied Snapchat Stories for its subsidiary, “Instagram,” and the impact was for all to see. Since its launch, the numbers for “Instagram Stories” have been swelling, whereas the growth of Snap users has almost stalled. This has been a major reason for the pessimism surrounding Snap stock and the optimism related to Facebook stock. The fact that Facebook owns hardware businesses and messaging apps as well does not do anything good to Snap Inc’s cause.
Snap Stock Suffers from Lack of Clarity
It has been exactly a month since Snap Inc debuted on NYSE and the initial euphoria seems to have died down. Evan Spiegel has a lot of challenges going ahead as Snap stock investors expect a lot more from the social network than just being the best camera company.
As mentioned earlier, Snap Inc needs to keep working on introducing new products and features that keep its innovative momentum going.
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