1 Social Media Stock Likely to Thrive in a Reopening Economy
Recent research by Morgan Stanley found that social media usage on some platforms has dropped sharply relative to levels at the end of 2020, when more consumers were staying at home. A reopening economy, therefore, may have an inverse relationship on some aspects of user engagement for some social media platforms. But one social media company, in particular, may actually benefit from a reopening economy: Snap (NYSE: SNAP) -- the parent company of photo- and video-sharing app Snapchat.
Sure, Morgan Stanley did say in its report that it believed one of Snapchat's in-app products -- Snapchat Discover -- saw a drop in engagement recently compared to levels in December 2020. But Discover, which helps keep users up-to-date on current events and find content from pop culture, influencers, and more, is just one feature of the Snapchat experience. Peer-to-peer engagement and total advertising revenue on the app, however, are likely both thriving.
Image source: Getty Images.
Source Fool.com
