Snap Inc. Stock Grows By 183% in Six Months
Throughout the past few months Snapchat has been working hard to turn things around – and their strategy appears to be working.
Whether it comes down to the Android app revamp or the release of Snap Original series, the story-sharing platform is finally seeing some results and the success is starting to show on the trading floor.
According to CNBC.com “…after a rough two years since its IPO, Snap’s stock is up 183% this year, outperforming every member of the S&P 500."
The main reason for their recent success is their decision to abandon efforts to appeal to all ages.
Instead the platform focused on a younger demographic, implemented improvements to the app and utilized specific marketing techniques.
Snap targeted Generation Z (individuals born between 1996 and 2006) as it is in this age group they can reach up to 48.4 million users.
While Facebook is the network primarily used by Millennials and Baby Boomers, analytics and trends demonstrate the shift of the newer generation over to Snapchat and Instagram.
With the developed use of AR (augmented reality) filters on Snapchat, the app boosted its popularity with its main demographic and drew many new users in.
For example, The Gender Swap and baby filters went viral on other platforms, as fans shared Snapchat-generated content on their Facebook and Instagram accounts earlier this year.
The same technology has also been used to advertise popular TV shows, events and products that are predominantly enjoyed by Gen Z. For example, in April Snap teamed up with HBO to create a Games of Thrones lens to promote the upcoming season.
Through collaboration with other media outlets, the future is looking bright for Snap Inc.
What are your thoughts? Let us know in the comments below.
Photo credit: CNBC