Snap Inc (NYSE:SNAP) investors are not having a good time. The stock is down over 41% amid stalling growth and declining monthly active users. But there are several catalysts on the horizon which suggest Snap could be a decent investment. On Wednesday, Piper Jaffray analyst Sam Kemp reiterated his survey which suggests that teens prefer Snapchat over Facebook. This could be a major growth catalyst for Snap Inc (NYSE:SNAP) as teen users are the most useful and lucrative customer base for social media companies.
On Tuesday Snapchat announced a new feature called “Context Cards” which allows Snapchat users to see the physical location from where Snaps are sent. Analysts think that Context Cards will woo advertisers as well. Location-based data is always attractive for advertisers and small businesses. Context Cards will also be integrated with Snap Maps, which allow Snapchatters to see the location and activity of their friends on a map. Context Cards will also include the business information of the places from where Snaps are sent. For example, if a user posts a Snap of a steak from a restaurant, their friends will be able to see the exact location, contact information and reviews about the restaurant. They can also instantly book a ride to the place. For the Context Cards feature, Snap Inc (NYSE:SNAP) partnered with TripAdvisor, Uber, Lyft, Foursquare, Michelin, Goop, OpenTable and Bookatable. Context Cards will be very easy to monetize in the future. Snap could charge restaurants and other businesses for promotion. Context Cards will turn Snapchat into Yelp for teenagers. Businesses will strive to improve their footprint on Snapchat because younger audience prefer to go to the places which are liked and rated well by their friends.
In August, eMarketer said in a report that Snap Inc (NYSE:SNAP) user count in the US will increase by over 25% by the end of 2017. The report said that Snapchat remains the most popular app among users aged between 18-24 and 12-17. But earlier this month, eMarketer cut its revenue forecast for Snap Inc (NYSE:SNAP) amid rising threats from Instagram and Facebook. The report said that Snap remains an “experimental bucket” for investors.