![]() ![]() In our view, as TikTok and Instagram stories increasingly succeed, more and more advertisers will understand and warmup to Snapchat. Similarly, Snapchat has struggled because of its need to find advertisers for its video format. Its US APRU at that point was roughly $6-7.įacebook, with unique advertiser service abilities, now was 8x the ARPU with 30x the users. At its peak, MySpace was seeing roughly 115 million MAU (monthly active users), or 3% of Facebook today. That's because MySpace and early internet companies were pioneering a new form of earning money while still having a much smaller size than many internet companies today. However, in our view, that competition is actually a benefit. The company has seen new competition from Facebook and Instagram copying its popular stories along with TikTok popularizing the video communication and sharing format. Snapchat has increasing competition, but in our view, that competition actually helps the company. The company views itself as a camera company that's focused on innovating how the camera is being used to communicate. Developers and customers are continuing to remain engaged. Spotlight and new AR/VR features remain growing and popular among the community, with opportunities such as lens. Stories continues to be a core basis of the company, followed by maps. Snapchat has focused on camera and augmented reality to provide new experiences for users. Snapchat Customer Engagement - Snapchat Investor Presentation Snapchat is focused on strong customer engagement to continue growing here. ![]() There is an important takeaway here that young people are still downloading the company's apps.Īt the same time, internationally, and among older populations, the company still has significant room to expand, something that it's been focusing on heavily. In the US, UK, Australia, France and Netherlands market, the company has a combined 90% penetration rate among 13-24 year-olds and 75% among 13-35 year-olds. The company has significant penetration in its established markets. Its managed to achieve 50% growth here in 3 years. For perspective, at the end of 2018, the company was stagnant at less than 200 million daily active users. That represents a significant base for the company, especially as its focused on international expansion through the COVID-19 pandemic. Snapchat has 306 million daily active users. ![]() Snapchat Active Users - Snapchat Investor Presentation Snapchat has an active and engaged user base, forming the core of the company's operations. Since then, new companies, primarily Facebook and Google have come along, proving to investors that internet companies can drive massive profits. Customers jumped to other more exciting platforms, and MySpace become less valuable. The company was forced to increasingly chase ads and ad revenue, leading to poor user design and a poor experience. In a fledging online advertising world, where no one truly knew how to drive revenue and profits, the company was forced to chase its new owner's unattainable revenue goals. However, in the midst of that, the company was sold. From 2005 to 2009, the company was the largest social network in the world, and in 2006, the company passed both Google and Yahoo to become the largest social network in the world. MySpace was once, as all readers born before 1995 will know, a major company. Myspace versus Facebook (NASDAQ: FB) is the tale of two companies in social network space, one that managed to monetize effectively, and one that didn't. As we'll see throughout this article, as the company attempts to manage growth, we expect it to generate strong cash flow. The stock is done 40% over the last 3 months, however, it's also up more than 70% over the last 5-years. ![]() Snap (NYSE: NYSE: SNAP) is a $75 billion social network company, that's seen a variety of both strong stock performance and underperformance recently. Stockcam/iStock Unreleased via Getty Images ![]()
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