Snap Inc. stock price is up almost 200% after hitting a record low of $4.99 in December 2018. The U.S. technology company offering price is now on the rise and is currently sitting at $15.61, within reach from its initial asking price of $17 when they launched in March 2017.
Goldman Sachs analyst, Heath Terry wrote, “For Snap, we believe product improvements and feature additions are driving positive trends in user growth and engagement that, along with monetization improvement from ad tech initiatives, should drive upside to consensus estimates.”
The company has made several changes to bring on this turnaround, the first of which has been focusing on younger users, also known as Generation Z. In the U.S, the application now reaches up to 31.2 million people aged between 18 and 24 years of age and can reach 48.4 million between 13 and 24 according to the company’s ads management tool.
Another step has been to bring on a new sales team, with more experience to improve the relationship between advertisers and the brand.
The company’s augmented reality (AR) technology has also been gaining a lot of hype. In April 2019, television network HBO teamed up with Chat to create a lens which allows users to watch one of the Game Of Thrones’ dragons land on New York’s Flatiron Building.
Despite Snap’s best efforts the company is still losing millions of dollars, reporting losses of $310 million in the last period.