Snap’s stock has been on a roll
Snapchat parent Snap (SNAP) has been on a roll lately, with its stock rising 130% since it reached an all-time low of $4.82 on December 21. The stock surged 22% when its fourth-quarter revenue beat analysts’ expectation last month and has been on a tear since.
Last Thursday, Snap stock rose ~10% following an upgrade by BTIG analyst Rich Greenfield, who gave the stock a “buy” rating. According to Variety, the analyst”turned bullish on the stock, in part because the app has shifted away from ‘clickbait/seedy influencer content’ to more premium-produced content.” Greenfield’s price target for the stock is $15.
The stock, now trading at a six-month high of $11.28, has been battered since its IPO due to various factors. One factor has been stiff competition from Facebook (FB), which has been cloning Snapchat’s features on its apps.
Snapchat to unveil a gaming platform
Meanwhile, according to Cheddar, Snap is set to announce a mobile gaming platform on its app next month. Snap’s push into gaming started last year through augmented reality games. Cheddar reports that the company had invested in two gaming companies in the past year.
Gaming could be another revenue source for the company, in that Snapchat could charge players for in-app purchases or ads. Gaming could also help Snapchat retain its user base, whose growth has been slowing for over a year now. Chinese Internet giant Tencent (TCEHY), a leader in online games, owns ~10% of Snap.