The numbers highlighted how Snapchat’s advertising business is struggling as the economy weakens and competitive challenges mount, most notably from TikTok. Technology stocks had another rough day on Friday, and the biggest reason appeared to be Snap's (NYSE: SNAP) earnings report. After falling nearly 40% on Friday, Snap shares were mostly flat at $9.95 on Monday, while the S&P 500 index was up 0.1%. The news of Snap's poor results hit a host of technology companies. Nowak argued that the report shed light on Snap’s ad business, which he thinks is less developed than he previously believed. The Snapchat stock price fell by -39.08 on the last day (Friday, 22nd Jul 2022) from 16.35 to 9.96.During the day the stock fluctuated 12.11 from a day low at 9.91 to a day high of 11.11.The price has been going up and down for this period, and there has been a -33.42 loss for the last 2 weeks. Made to iOS in 2021 that hit direct-response advertising-ads that seek to prompt people to sign up for a service or make a purchases-through growth in branded ad spending, the analyst wrote. “The macro challenge now is that those branded dollars are among the first to be cut in times of economic weakness,” Nowak wrote. “Combine this with the fact that in order to grow SNAP must continue to convince new advertisers to come onto the platform and experiment (which we think will be more difficult through periods of economic weakness) and the outlook becomes much less certain.” Those factors don’t bode well as Snapchat competes with TikTok for brand spending, Nowak believes. He expects TikTok to grow its ad revenue significantly in 20, building its branded ad business with offers of lower pricing for advertisers. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable. “The platforms that are most at risk to losing dollars to TikTok are those that have ad businesses that are more branded dependent and less performance (transaction) driven,” Nowak wrote. Chinese automaker BYD is also making waves in the EV space, and its latest offering is the 62m Iconiq.“Our learnings from SNAP last week increase this risk. But Tesla isn’t the only player in the game. The company has consistently been at the forefront of innovation, and its cars are some of the most sought-after on the market. When it comes to electric vehicles, it’s hard to beat Tesla. “We’re looking at companies that have real product-market fit and are growing very quickly,” said managing partner Jesse Draper. reprise 62m iconiq growthsawersventurebeat So when a company like Iconiq saw 62% growth last quarter, it’s no surprise that people are taking notice.Iconiq is a growth-focused venture capital firm, and their secret seems to be a focus on data-driven decision making. Reprise, a Boston, MA-based demo and product experience platform, raised 62m in Series B financing. In the business world, growth is always a hot topic. This is especially true in the case of digital advertising, where banner blindness is a real problem. In a world where the average person is inundated with over 3,000 marketing messages each day, it’s no wonder that companies are always looking for new ways to break through the noise and capture our attention.
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