Remember when SNAP was trading at 80 dollars? The reason that SNAP was trading so high was because of ads. During a bull market, many companies had money they could spend and experimented with putting ads on SNAP. In the recession, they stopped having ads on SNAP and put them on other apps and websites like YouTube, Facebook, etc.
SNAP didn't really have a good way to put ads. They made deals with some companies so they could put ads. A better thing they could have done is have anyone pay for ads, like what other apps and websites do. Also, the reason why they missed earnings is that they invested a lot of that money into other things, like AI and better ad systems.
SNAP has some things its competitors don't. They have over 100 million active daily users on the app, and a lot of young people use the app. People and companies whose audience is younger people would prefer Snapchat over other apps and websites. If they implement their ad system correctly and things go well, the stock price could reach $25.
What do you guys think, will they be successful with ads or no?
This is not financial advice, just a take on SNAP. I do not have any positions on SNAP as of right now, but I might buy in the future. I only focused on ads here but there are a lot of other things to look at as well.
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