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$SNAP - The SnapBack

Snapchat owner Snap Inc. (+10.45% after hours) reported its strongest three months as a public company yesterday, with its daily user base growing 7%from the previous quarter to 203 million. Q2 revenue also increased 48% annually, beating expectations. 
Zoom out: Snap’s 2017 and 2018 were about as bad as it gets for a disappearing photo sharing platform. The company suffered from shrinking downloads, a botched redesign, and competition from Facebook’s three-headed monster—Instagram Stories, Facebook Stories, and WhatsApp Status. 
But it looks like Snap’s beating that monster back. Its weapon? Teens.

How Snap learned to stop worrying and love Gen Z 

For a brief moment in 2017, CEO Evan Spiegel said the company wasn’t doing enough to get moms and dads snapping. But now, attracting Gen Z has come back into focus:
Speaking of ads, Snap also improved its ad tech with features enabling partners to better track their campaigns.
  • SimilarWeb, an analytics firm, said global visits to Snap’s advertising platform increased by 23.9% over the last year.

Finally...have you seen those filters? 

Snapchat’s rolled out a whole bunch of new features over the past few months:

But it hasn’t completely recovered

Though Snap’s stock is up more than 180% since its December 2018 low, it still hasn’t reached its $17 IPO price from March 2017. And Snap keeps losing money ($255 million last quarter) as it spends on R&D for those whizbang AR features. 
Bottom line: Snap can’t touch Facebook’s world-dominating scale, but its advanced tech and grip on the teen market could give it an edge.

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