Snap: the social media company should pass the glasses
Snap Inc update
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Being small has its advantages. Snap avoided the worst of techniques, as evidenced by the lack of antitrust hearings. While big rivals are under the watchful eye of lawmakers, Snap has spent time creating self-service advertising options, improving Android apps, and delivering more content to its users.
Scrolling a few years ago, the position of the pictures in the sky on social networks Dangerous.. Instagram has duplicated its best features and swelled to a billion users. Advertisers poured money into Facebook, leaving behind a small platform to fight over the junk.
But by focusing on the content, Snap retained the fancy young users and won even more. The social media platform currently has 293 million Daily active users – More than a fifth more than last year. This is the strongest user growth in four years.
The rewards represent an average revenue per user of $ 3.35, up from $ 1.40 for the same period in 2018. ARPU is growing twice as fast as Facebook, albeit on a small scale. This rate of growth is expected to continue if Apple’s privacy changes continue to make relatively small differences in Snap’s advertising plans.
But if that fails, Snap will continue to seek profit. Ten years after its creation and four years after its listing, Snap is still reporting losses. These are at least tightening, down more than 50% in the previous quarter to $ 152 million. Reducing infrastructure costs and increasing advertising prices are paying off.
The catch is, Snap refused to give up on its plans to become a hardware tech company. Despite a failed mass production plan and a depreciation of $ 40 million in 2017, we continue to produce a small number of augmented reality glasses called Spectacles. This year, we made the largest acquisition to date with UK company Wave Optics, a supplier of AR displays. Over $ 500 million.
Although Facebook, Apple, and Microsoft are investing in this idea, current forms of AR glasses are unlikely to become mainstream. Hostility to technological intrusions into privacy is increasing and not declining. Snap will strengthen its investment proposals by pursuing diversification with higher expectations.
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