The 1 Thing That Could Make Snap's Gains Disappear Like a Snapchat Photo
Snap (NYSE: SNAP) stock has become more photogenic over the past two years. As the company improved monetization and expanded its user base, its stock has risen.
However, Snap has become a pricey stock even as it contends with increasing competition from TikTok and continued pressure from the dominant company in social media, Facebook. Such duress could make the upward momentum in the communication stock disappear like a Snapchat photo.
Soon after its 2017 IPO, Snap faced increasing competition and reported stagnant growth in daily average users (DAUs). That changed last year when the company found an effective strategy to increase ad revenue -- developing video content. These programs, called Snap Originals, are short programs shown in a vertical video format (like Snapchat itself) that include 6-second commercials.
Source Fool.com
