Snap Inc. (NYSE:SNAP) shares are gaining value after several investment firms gave bullish ratings for the stock, citing user growth.
On June 6, Deutsche Bank gave a “Hold” rating for Snapchat stock. The bank said in its report that Snapchat saw a 3% growth in users in May, which shows that things may be turning around for the company. Deutsche Bank has a price target of $12 for Snap stock.
Snap Inc. (NYSE:SNAP) leadership faced a scathing criticism on the Snapchat app redesign, but it seems the move played a role in reinvigoration of growth. Deutsche Bank’s analyst Lloyd Walmsley in his report expressed confidence on the newly designed app.
Snapchat is taking several steps to undo the damage done by its app redesign. Last month, the company rolled out a major update to bring back several old features that were missed by millions of users. The update repositioned the Stories page to the right of the main Camera screen. Order of Snaps and Chats was also set based on chronological criteria.
Andrew Left’s optimism about Snapchat
Last month, Citron Research issued a bullish note regarding Snap Inc. (NYSE:SNAP) stock and set a price target of $17 for the stock. Citron Research said that Snapchat is poised to grow on the back of the recent data scandals that hit Facebook and Twitter as reported by the The Telegraph. The firm also believes that Snapchat remains the most popular app among teens. Citron Research’s note about Snapchat is extremely important because it was written by notorious short-seller Andrew Left, who is known for his predictions and analysis.
Teens Love Snapchat
Snapchat shares recently got another bump after a report by PEW research showed that Snapchat is one of the most popular apps in the US. 69% of the teens said in the survey that they actively use Snapchat, more than Facebook and Twitter. Piper Jaffray’s bi-annual “Taking Stock With Teens” survey shows that over 45% teens prefer to use Snapchat.
Snap Inc. (NYSE:SNAP) ads revenue per user remains low when compared to Twitter and Facebook. But Snapchat’s leadership is taking major steps to solve this problem. In the first quarter earnings call, CEO Evan Spiegel said that over 81 million people watched coverage on Snapchat through its new Discover feature. Snapchat’s initiative to stream different matches on its platform is also paying off. Over 10 million people watch different matches on Snapchat. Snapchat is providing different tools to advertisers. For its Reach and Frequency tool, the company is partnering with Unilever, Procter & Gamble, Google and Microsoft.
Author does not have investment in stock discussed in this article. Sign-up for our bi-weekly newsletter so you don’t miss any hot investment opportunities. Also don’t forget to get our recently published Best Blockchain Stock To Invest In Right Now report absolutely free.