News – AU – Snap Stock is getting an upgrade in the sales potential of short videos

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Snap IncAccording to a Morgan Stanley analyst, the newer features are gaining traction, which could add another boost to already hot stocks

Brian Nowak of Morgan Stanley has upgraded Snap’s stock
SNAP,
-739%
Overweight the same weight late Sunday on the grounds that the company’s momentum could lead to higher revenue potential with features like Spotlight and Maps.He raised his target price on the stock from $ 50 to $ 80, with the new target about 22% above that current share price was

“As we have seen with other platforms (FB, togetL etc) new forms of engagement create opportunities for more monetization (ad dollars follow users) ”, wrote Nowak.“ We believe that this will also be the case with SNAP ”


The company recently announced that its newly launched Spotlight platform, which allows users to submit Snaps for viewing by a wider audience than just their friends, had over 100 million monthly active users in January, Spotlight gives Snap the opportunity to Better use of short-form videos Nowak said this will remain one of the fastest growing forms of online entertainment ”

Nowak is also optimistic about the revenue potential that exists in other businesses outside of Snap’s central messaging platform, with Discover, a section of the Snap app that includes content from publishers and Snap original shows, remains the average revenue per user In spite of much higher ad prices behind the value of the Snap core platform, “as far as the monetization option is concerned,” wrote Nowak. He predicts an average annual growth rate of 53% for Discover from 2021 to 2024

Another emerging division of Snap is Maps, a feature that allows users to see what activities their friends are participating in on a map and explore other local locations. “We see monetization potential from SME partnerships (small and medium-sized businesses ) and transactional integration, “Nowak wrote, although he took this opportunity given the fact that Alphabet Inc’S
TogetL,
-102%
Google Maps has shown some “difficulties in scaling and running local map monetization”

Nowak projects that could bring Snap Maps $ 129 million in US Advertising revenue through 2024, while the platform is currently not generating any revenue

Snap shares are up 48% over the past three months as the S&P 500
SPX,
-072%
has increased by 9%

Carnival Corp. can’t take customers around the world on his cruise ships expecting to sell some stocks instead

Stock, Morgan Stanley, Snap Inc, S&P 500

News – AU – Snap Stock receives an upgrade in sales potential of short-form videos
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Source: https://www.marketwatch.com/story/snap-stock-gets-an-upgrade-on-revenue-potential-of-short-form-video-11614013555