Snap Stock Price Prediction: $100 Target is Achievable
Snap (NYSE: SNAP) stock price saw a stunning 250% gain in fiscal 2020, which many believe was supported by pandemic related staying at home policies.
It’s true that pandemic has shifted users towards social media platforms but the company’s strategies have also played a key role in gaining user’s confidence.
Snap, which is the parent company of Snapchat, reported 22% daily active users growth to 265 million, beating Wall Street expectations for 258 million. Moreover, the company says Snapchatters opened the app 30 times a day in the fourth quarter.
Spotlight is a Big Success
Snap has been seeing a big success through the launch of the short video feature Spotlight, which is placed on the rightmost tab inside of Snapchat. Spotlight has generated 100 million users in the first month of this year, just two months after it launched.
Snap CEO Evan Spiegel said
“We’re very pleasantly surprised with the momentum.”
The company has been investing significantly to boost its TikTok competitor’s user growth over the past couple of months.
Like TikTok, it announced to return money to users who post videos and other stuff on the platform. The strategy of sharing revenue with users worked because video creators are now adding 175,000 videos per day.
Snap Stock Upside Momentum is Sustainable
Despite easing social distancing policies, Snap stock price is likely to extend momentum amid the company’s aggressive growth strategies.
Strong revenue growth is among the biggest catalyst for Snap’s stock price momentum. Its revenue surged 62% in the fourth quarter while the company has been strengthening its advertisement platform to generate better returns and outcomes for advertisers.
The stock price surged 30% so far in 2021 and it’s highly likely that strong financial numbers and an increasing users base would extend the upside momentum.