Snapchat will benefit from FB scandal?

[KyleLennon]

Snapchat brings group video chat and friend tagging in Stories. These new features are going to boost engagement.

Snapchat recently collaborated with artist Jeff Koons to unveil an art platform and rolled out 3D Bitmoji World Lenses. Besides, the company partnered with NBC News to produce a twice-daily headline news show Stay Tuned for the Snapchat app in a bid to reach the highly sought-after millennial cohort.

Advertising is the primary source of revenues for Snap. Snapchat quarterly revenue growth was 62.20%.

Let’s see Snapchat ratings:
On April 2, 2018: “Hold” Rating by SunTrust Robinson
On March 28, 2018: “Hold” Rating by Finstead Research
On March 8, 2018: “Buy” Rating by Morgan Stanley

Do you think that Snapchat will increase it user base or its advertising revenue due to Facebook scandal?

Buy/Hold/Sell Snapchat, which decision will you make recently?

 

[bluebellmk]

I doubt snapchat would see any real user growth from non Facebook users. A user with Facebook will likely already have a snap chat account when you think of the target market.

So it is unlikely they will have any decent number of new users on the back of the FB scandal.

Think about it a user on snap will likely have an fb account. People who left fb are unlikely to seek a new SM platform and the rest will probably already use snap.


edit:

Potential for increased advert revenue etc if users spend longer on their snap, that would be the only quantifiable benefit I can imagine.

 

[wackypete2]

fb will bring down all the social media stocks.

Peter

 

[KyleLennon]

I doubt snapchat would see any real user growth from non Facebook users. A user with Facebook will likely already have a snap chat account when you think of the target market.

So it is unlikely they will have any decent number of new users on the back of the FB scandal.

Think about it a user on snap will likely have an fb account. People who left fb are unlikely to seek a new SM platform and the rest will probably already use snap.


edit:

Potential for increased advert revenue etc if users spend longer on their snap, that would be the only quantifiable benefit I can imagine.

You are right.

I would think because of FB scandal, Snap will gain more potential users in the coming years.

 

[KyleLennon]

fb will bring down all the social media stocks.

Peter

I think FB will go down, and others will go up with high probability. FB does not have such power to affect other social media stocks negatively.

Try to think this way, two male tigers are chasing a deer, the one with injuries will lose the deer, but the one without any problem, will catch the deer.