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Snap
The latest initiatives improve the engagement and download of applications, according to Goldman Sachs.
The story back. Stocks (symbol: SNAP) have risen more than 180% since the beginning of the year as investors become increasingly optimistic about the company's ability to recover.
The company's shares fell about 60% last year due to the disappointing number of users after an unpopular redesign of apps, but in recent months, Snap has launched an improved app for Android, Snap Games and new goals.
What's up. Goldman Sachs analyst Heath Terry Friday increased its rating for Snap's shares to Buy from Neutral, predicting better user growth for the company.
"For Snap, we believe that the product enhancements and added features are generating positive trends in terms of growth and user engagement. Along with improving monetization from ad-tech initiatives, consensus estimates should be optimistic, "he wrote.
Snap shares rose 0.9% Friday to $ 15.71.
The analyst cited data revealing that the number of Snap application downloads reached a record 41 million for the month of May compared to the previous record of 30 million recorded mid-2016. He also noted that users were giving higher marks for his latest application.
"Our verification with advertisers also leads us to believe that the continuous innovation of the company in its ad-stack, especially self-service, should allow SNAP to significantly improve the monetization of time spent by users on the platform, "he wrote.
Look forward. Terry has increased his price target for Snap shares from $ 13 to $ 18.
Write to Tae Kim at [email protected]
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