SNAP - Embedded Expectations Analysis - 2020 07 22
Snap Inc. (SNAP:USA) currently trades near historical highs relative to Uniform assets, with a 12.9x Uniform P/B. At these levels, markets have bullish expectations for the firm, and management is confident about platform usage and their success reaching the 13-24 demographic, and their current ad strategySpecifically, management is confident in their improved engagement and usage of the app during the pandemic, as well as improvements in their Discover page stemming from improved editorial selectivity. They are also confident in their relationship with direct response advertisers. Moreover, they are also confident in their success in reaching the 13-24 demographic, their ability to help users discover new brands through ads, and with the optimization of their ad platform. Additionally, they are confident in expectations for increased advertiser investment and the success of their augmented reality platform in driving donations for coronavirus relief
Snap is a camera company. The company's primary product, Snapchat, is a camera application that helps people to communicate visually through short videos and images called Snaps. The company's products are: Camera, which includes tools for people to personalize their Snaps; Chat, which includes interacting with friends on Snapchat; Discover, which includes providing Stories and Shows from publishers, creators, and the community; Snap Map, which shows a live map of the user's location; Memories, which enables users to save the Snaps they create in a personal collection called Memories; and Spectacles, which includes creating Memories by using Spectacles, which are the company's sunglasses that make Snaps.
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