The firm will have to start leveraging the international user growth it’s seen in order to continue adding revenue. So bad that company CEO Evan Spiegel just took a major hit in the net worth department. And there are some recent allegations of Snapchat making moves to do just that. Considering the purpose of an IPO is to raise money, it would make sense that they would. Two, it delivered inflated metrics to Alibaba Group, who was a potential investor. Any missteps or unexpected declines and Snapchat’s rally could come tumbling down. One of the biggest reasons long-term investors might want to stay on the sidelines with SNAP stock is the fact that the firm is entering a tough year for earnings results. Both you and your friend will have the message saved. Snapchat shares plunged over 10% in after-hours trading following the announcement. During the third quarter, Snapchat’s DAUs rose by 13%. Snapchat launches Bitmoji TV: zany 4-min cartoons of your avatar, Snapchat reaches 90% of US 13 to 24 year-olds and over 75% of 13 to 34 year-olds, Total daily time spent by Snapchatters watching Discover increased by 35% year-over-year, and its up 60% for users over the age of 25, Cameos, first reported by TechCrunch, lets users graft their face onto an actor in an animated GIF. That’s up from a low of $4.99 in December 2018 when its user count was shrinking under competition from Instagram Stories. The big question is whether Facebook Messenger, Instagram, and WhatsApp will get more serious about ephemeral messaging that’s at the core of Snapchat. Snapchat’s user growth has been on tear thanks to international penetration, especially in India, after it re-engineered its Android app for developing markets. But that time has come and gone, as video sharing app Tik Tok appeals to the younger generation. Snapchat is far from the only social media platform out there. That suggests that any good news coming up in 2020 has already been priced in. Shares had closed up 4.17% at $18.99 today. All rights reserved. By Money Morning News Team, Money Morning • February 1, 2017. So now that we know how the company makes money, how much is Snapchat worth? However, now Snapchat sports a price-to-sales ratio of 16 — a sizable premium compared to its peers. SNAP stock was able to make its way 65% higher over the course of 2019, but 2020 looks decidedly more mellow for the “camera company.” That rally was certainly earned when when you look at the firm’s user growth, revenue growth, and expanding margins throughout the year. The OG of the social media space started out as a platform just for college students, but has since become the preferred sharing network across a wide range of demographics. © 2020 Money Morning All Rights Reserved. Get Our Best Wealth-Building Ideas: Money Morning's top 5 investment reports to grow your money like never before are right here – and they're absolutely free. Snapchat had a mixed quarter compared to estimates, exceeding the EPS predicitions but falling short on revenue.

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