Fortnite Is More Popular Than Ever… Good Time to Buy Activision?

Recently, we wrote an Article on Fortnite’s monumental success through the last few months and the effect that it would have on Activision. Since we wrote the article Activision’s stock has fallen over ten percent, dropping 6 billion in market cap.

Fortnite’s popularity doesn’t seem to be fading. Not only has the game gained more users, but Epic Games(The creators of Fortnite) have also come out with a mobile version of Fortnite. Enabling people without a PS4, Xbox, or a computer to access the game.

From our perspective, Fortnite hasn’t slowed down and is more popular than ever. Kids in our school play it in every moment of spare time they have.

Fortnite is doing a good job of coming out with new guns and features to keep the game progressing.

How much room does Fortnite have to grow? Fortnite is getting just about as much publicity possible right now, being featured all over social media, just about everyone has heard about Fortnite. That being said, they simply don’t have much room to grow. Nothing stays cool and popular forever, while Fortnite is popular now, soon the hype around the game will begin to fade. People will get tired of posting about it and talking about it eliminating the buzz around the game. Additionally,  Activision is expected to release a similar Fortnite gameplay to their popular games such as Call of Duty and Overwatch. As of now, there is no one else offering the same style gameplay as Fortnite other than PUBG, when Activision and other companies begin releasing a similar style game, it will become harder and harder for Fortnite to maintain their current active user base.

As Fortnite popularity fades, Activision will be able to reclaim much of their lost market share. Understanding that Activision’s recent dip is due to Fortnite’s success, it is crucial to figure out when Fortnite begins to lose popularity. Identifying this could give you a good entry price in Activision’s stock

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

People are Getting Over the Snapchat Update…

One month ago, Snapchat users were shocked with a new app design. The general response to the update was horrible. People were angry and confused.

The update caused many to post their outraged reactions, creating a spiraling negative effect around Snapchat. Many articles on how people were frustrated with the app came out and contributed to the decrease in share price. The worst impact to the company happened when Kylie Jenner tweeted “Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad,”. The day this tweet was published, Snapchat went down big. The tweet took 1 billion dollars off their market cap.

Our View:

We believe the market cap decrease after Kylie Jenner’s Tweet was ridiculous. Although Kylie Jenner has a huge following, her tweet did not stop people from snapchatting.  Also,  after Kyle Jenner made her comment, even she continued to use the app and posts frequently.

The Snapchat update was a huge change and may have scared a few users away. However, we believe the anger towards the update has mostly vanished, and people are used to it. When the update first came out many of our friends were disappointed and turned off by the remodel. As time went on, we saw all of our friends’ disgust for the update slowly fade away. Personally, we have completely adjusted to the new design.

The negative media attention surrounding the Snapchat update didn’t translate to fewer users. Many estimates show that little to no Snapchat users left the platform following the update. The number of daily active users only decreased a fraction of a percent. In conclusion, people don’t like change, but they learn to get used to it. That’s what has and will continue to happen with Snapchat and its remodel.

Market Reacts Strongly to Twitter’s New Feature – Stock Was Up Seven Percent on Day

Twitter’s new feature

On March 14th Twitter stated that they were working on a “camera-first” feature. After delivering the news, Twitter’s stock spiked, rising over seven percent on the day. Although early in development, the new concept is said to resemble some of the Snapchats features while being integrated into Twitters existing platform. It is said to incorporate photo, video, and location. That being said, there is very little known about the new feature and nothing can be confirmed.

What does this new feature mean for Twitter? Why did the Market react so strongly?

To back up their successful earnings report, Twitter will need to report strong earnings in the upcoming quarter in order to increase or maintain their current stock price. To do this, Twitter will have to optimize their advertisement capabilities to maximize their ad revenue. Their new feature plays a huge role in increasing their ad revenue as it is an entirely new part of their platform which means entirely new advertising opportunities. Additionally, video advertising is significantly more expensive than text, therefore, many believe that this “camera-first” feature will have a huge effect on increasing ad revenue. Also, this new feature will allow Twitter to compete with other social media platforms such as Snapchat as they now too will be placing advertisements between photos and videos, similar to Snapchat stories.

What do we think of this new feature?

As it is the beginning steps of developing this feature, it is very difficult to understand the specifics of what it will look like and how people will react to it. We believe that a “camera first” feature in which the user can use their camera to post current/relevant photos or videos will fit seamlessly into Twitter’s current platform. Twitter specializes in current day to day topics in real time, this new feature will enhance the user’s experience by giving them the opportunity to express their ideas and feelings through real-time photo and videos that they take. That being said, there have been instances in which new social media features receive a lot of backlash from their platform users at first (ex. Snapchat update, Instagram stories). Even if Twitter’s new update doesn’t get a positive response at first, we believe that the platform’s users will eventually learn to get used to using it as they did with the other social media features mentioned above. Although in the early stages of development, we feel that a feature of this sort would be huge for Twitter.

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

What Social Media Networks Teens Use The Most – Facebook, Snapchat, Twitter, or Instagram?

Teenagers are always looking at their phone, circulating between social media networks, but do you know which platform teens use the most?

Did you guess Snapchat, Facebook, Instagram, or Twitter?

You probably did. These 4 social media platforms make up 87 percent of teens top preferred networks. However, Snapchat prevails as most popular with almost half of the teens selecting it as their top social media network.

A survey conducted in 2017 shows that 47 percent of teens prefer Snapchat as their top social media network over any other social media networks. Next was Instagram capturing 24 percent of teens. Facebook came in at 9 percent and Twitter 7 percent. 

Our View: In our eyes, the statistics are spot on. Snapchat is absolutely the most common to the teenager life. Streaks, which are created by sending at least one Snapchat back and forth to your friend per day are what keep users coming back day after day. This is why Snapchat has been able to accumulate over 187 million daily active users. Stories, which are 24-hour posts, are an awesome way to keep up to date with what your friends and favorite celebrities are up to. The snap map, which shows where all of your friends are geographically, is an incredibly cool feature that Snap has created, that allows friends to locate each other.  And last but not least, the discover section, which is a place where users can explore news, sports, and anything meaningful going on in the world.

Instagram is incredibly popular for teens. This is where teens usually post their best photos from their best experiences. When people post on Instagram, it is a big deal, compared to posting on Snapchat and twitter which are basically daily updates, posted more casually. 

Our experiences match up with data as we see teens spending the majority of their time on these two networks.

This leaves Facebook and Twitter. Facebook, by the looks of it, has lost all hope with teenage users. We see very few teens still using Facebook as most teens are on Instagram and Snapchat. Only 3 percent of Facebook’s users are teenagers with the majority of their demographic belonging to older generations. For Facebook to increase their number of teen users they will need to make a serious change. However, it is not as bad as it sounds since many of the teenage users they are losing are going to their very own Instagram.

Although Twitter is only 7 percent of teens favorite social media platform, they are still important to the teenage life. We see Twitter as a site that is typically not used every day but more of an impulse site when you need quick updates on a matter or when you want to see what is trending. Although Twitter isn’t the number one site for teens, they definitely provide a unique platform for the uses stated above.

In conclusion, Snapchat and Instagram are running the show, capturing the majority of teens. Twitter is not as essential and appeals to a smaller amount of users. Facebook has really slowed down and has become less and less popular to the ever-changing teenager. Understanding the teenager’s favorite platforms is important because they not only make up a huge part of society but they also provide insight into the future of social media.

Sources:

https://www.statista.com/statistics/187041/us-user-age-distribution-on-facebook/

https://www.statista.com/statistics/250172/social-network-usage-of-us-teens-and-young-adults/

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

Where Will Twitter’s Stock Go From Here?

Twitter Stock Review(TWTR):

For years, Twitter has failed quarter after quarter to deliver profitability.  Recently, Twitter had its best quarter ever with a net income of 91 million dollars. Shocking the market, Twitter’s stock price has gone straight up since its successful earnings.  Additionally,  although Twitter’s revenue rose, its monthly active user base showed no growth. Twitter has shown great promise with its successful last quarter, however, there are still many issues surrounding the company. Let’s take a closer look at Twitter and what the future could hold.

Their Challenges:

At the moment, one of Twitter’s Problem is the number of fake or inactive accounts on its platform.  Many analysts downgrade the stock believing that many fake and or inactive users make up a large part of their user base. Also, many analysts believe Twitter is too similar to its behemoth competitor, Facebook. They believe that Twitter doesn’t have enough key differentiating factors and will eventually be crushed by Facebook.

The President’s Affect on Twitter:

If you follow politics, you know that The President Trump’s favorite way to reach the general public is through Twitter. He attracts many to the platform who otherwise would not of been on it. As a result, the President has brought publicity and new users to the platform.

Our View:

Although many see Twitter’s Short-term success as no indication of the future, we disagree.  

Twitter is already working on eliminating the inactive accounts that scared away many investors. Once these accounts have been eliminated, we don’t believe that this problem will have a significant or lasting effect on the platform. Additionally, we don’t believe the justification of this downgrade is fair because most other major social media platforms deal with or have dealt with similar issues.

From our recent experiences on Twitter, we have noticed an increase in ads throughout the platform. The company is clearly working to increase its ad revenue by finding new ways to increase the number of ads on the platform. This is great news as it shows advertisers are finding their advertisement campaigns on Twitter successful. However, if Twitter were to make ads even more frequent, the platform would begin to look spammy and tacky. Therefore, for Twitter to start making even more money(which it needs to – currently valued at 101 p/e) it will need to increase its daily and monthly active user base.

We see Twitter as an essential platform that will be here for the long run. Its platform separates it from other social media platforms such as Facebook and Instagram because it is THE PLACE for live news regarding any subject. If we want to see live updates of a sports game – we go to Twitter; If we want live news about a political topic – we go to Twitter; If we want weather updates – we go to our local weather man’s Twitter. The list goes on and on. We would never go to Facebook or Instagram to find these results, because people posting on Facebook and Instagram are mostly sharing special moments in their life, and not their opinion on a public news matter. That being said, some Facebook users do post about these topics, but generally speaking, Twitter has locked up that category. Therefore, because Twitter has a niche that is essential to social media and a strong demand for ads on their platform, we believe they have the potential to continue their success far into the future. 

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

 

Adidas Innovative Shoes Could Continue to Push the Stock – Company Puts Pressure on Nike

Adidas, founded in 1949, is currently one of the most popular clothing brands. Going up against huge competitors such as Nike, the largest sports apparel company in the world, has left the company out of the spotlight. However, in the past few years, Adidas has done an incredible job innovating and is now putting up an even more impressive fight. This directly relates to their significant rise in share price over the last few years.

Currently, Adidas has a market cap of 43.3 billion, 2 years prior they had a market cap of 13.7 billion.

2017 full years sales were 24 Billion, 3 years prior they were 17.845 Billion. Adidas has p/e ratio of 26.36.

What’s working for Adidas?

Through the past few years, the popularity of the Adidas shoes has grown exponentially. Adidas has created countless numbers of new innovative shoes that are changing the sneaker game. Shoes such as NMD, Ultra Boost, Futurecraft Yeezy, Human Race etc. are playing a huge role in growing the popularity of Adidas shoes. There is such a large demand for some models of these shoes that they not only sell out immediately but also resell for over retail prices.  The great demand for these specific shoes has a huge impact on the entire company as it boosts their brand and reputation. When the general public sees these specific Adidas products reselling way over their original retail prices, hype around the entire Adidas brand is greatly increased. This leads to more demand for all Adidas products which evidently increased their sales.

 

Our View: The increasing popularity of Adidas shoes has the potential to migrate into all of their other types of clothing. This poses a huge threat to Nike and other competitors. The brand is just as cool if not cooler than any of its competitors which has proven to be extremely important in today’s day and age.

The other day during class I looked down at my Adidas Ultra Boosts, then I looked at the kid’s shoes next to me and saw he also had Adidas on. I kept going around the table looking at people’s shoes, there were 6 Adidas and 1 pair of Nikes. A few years ago, if I were at a table, it would have been most likely the other way around. Something is changing……

What are your thoughts on Adidas? Let us know in the comments below!

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

Spotify in the Spotlight – Company Gets Ready to go Public

Spotify, founded in 2006, has just filed for their company to go public. Different from most initial public offerings, the Spotify stock will go straight to the NYSE with no team researching what the initial price offering should be. The risk associated with the stock could be very high since it could take wallstreet time to understand what the company should be trading at. As quoted from the filing, “prior to the opening trade, there will not be a price at which underwriters initially sold ordinary shares to the public as there would be in an underwritten initial public offering. This lack of an initial public offering price could impact the range of buy and sell orders collected by the NYSE from various broker-dealers. Consequently, the public price of our ordinary shares may be more volatile than in an underwritten initial public offering and could, upon listing on the NYSE, decline significantly and rapidly.”

How does Spotify stack up against Competition?

Spotify is up against tough competitors offering similar music services: Pandora, Rhapsody,Soundcloud, and not to mention the new and emerging Apple Music. Impressively, Spotify leads the industry in monthly subscribers with 71 million, the next closest is Apple Music with 36 million.  Although Spotify is much farther ahead, it is important to mention that Spotify was founded in 2006, while Apple Music was founded in mid 2015. Spotify has had a 9 year head start and Apple already has half the amount of subscribers they do.not only does Apple offer a quality service, but they also have the branding and marketing to heavily promote there service At this point in time, Apple’s success and growing popularity is one of the companies biggest threats.

How much money does Spotify make?

According to their F1 they have recorded increasing revenues for the past three years. In 2015 revenue was 2.37 billion, in 2016 3.6 billion, and in 2017 4.99 billion. However, the company has lost money the past three years as well. In 2015 the company recorded a operating loss of 290 million, in 2016 a operating loss of 431 million, and in 2017 a operating loss of 465 million.(All numbers recorded are in USD)

Our View: While Spotify is one of the leaders in the industry, we dont believe that there is anything separating them from the competition. From what we can see, the service that they provide doesn’t blow away the competitors. This is a problem for Spotify because it leaves little room to raise prices because there are endless alternatives for the consumer to go to for a cheaper price. This would opens the door for other music streaming services such as Pandora and Apple music to take some of their market share.

Additionally, with the large user base that Spotify currently has, they are still losing large amounts of money. Although Spotify is the most popular streaming service, in order for them to become profitable they will need to decrease expenses by renegotiating the amount of money they pay to creators or increase the cost of their premium membership. However, Increasing the cost of the membership is a slippery slope as it could turn customers away. Additionally, Spotify has very little leverage negotiating with music creators as they rely on their new content- if the company doesn’t have the latest popular song, the consumer will not hesitate to take themselves to a different platform.

Will Spotify be able to cut down their expenses while maintaining their market share to turn a profit?

Let us know your thoughts in the comments below!

The Future of Chipotle – Can Their Stock Make a Turnaround

Emerging in 1993, Chipotle was one of the first restaurants to serve healthy fast food. Being one of the first in the category of healthy fast food, Chipotle’s customer base grew rapidly, attracting many who had previously been deterred from fast food due to its lack of nutritional value. Opening new locations and growth of sales allowed Chipotle to reach a market cap of 23.41 Billion in late 2015.

For countless years, Chipotle seemed unstoppable in the fast food realm. After years of tremendous growth, Chipotle hit a massive roadblock in 2015 as illnesses such as E. coli and salmonella were reported by some of Chipotle’s customers. With hundreds victim to Chipotle’s sanitary issues, it’s stock took a turn for the worst. Reports regarding Chipotle’s sanitation continued, forcing Chipotle to temporarily close some stores. As their operating income plummeted from 764 million in 2015 to 35 million in 2016. When it finally solved its sanitary issues, the company was not the same. The huge customer base that it had built up was greatly diminished. The sanitary scandals put a bad taste in many of Chipotle’s customer’s mouths. Also, acknowledging the initial success of Chipotle, many other healthy fast food chains began to appear. These competitors capitalized on Chipotle’s sanitary issues by capturing some of their market shares.

Ever since their sanitary issues, Chipotle has struggled to return to its previous brand image and has seen decreases in same-store sales. This has caused the stock to sink from a high of $758 per share in in early August of 2015 to a low of $247 per share on February 9, 2018. Currently Chipotle has a market cap of 9 billion dollars with a P/E of 52. Looking at the P/E,  it is clear that investors still believe that Chipotle will eventually return to its former self and start earning profits like it was. It is on the right track, as it’s revenue went from 3.9 billion in 2016 to 4.47 billion in 2017. Also, Chipotle recently hired a new CEO, Brian Niccol, former Taco Bell CEO. His great track record in the fast food realm has brought new life to the Chipotle stock. Since they released the news on its leadership, its stock has risen from $251.33 to $322.70 per share.

Although news of Chipotle’s new CEO has temporarily boosted its stock, Chipotle is going to need strong earnings reports in the upcoming quarters to justify the continuation of this trend. In order to achieve these sales, Chipotle will need to regain lost customers.  Is it possible for Chipotle to regain these lost customers?  The amount of time it will take for previous Chipotle customers to regain trust in the brand is unknown. Some may never eat there again and some have already returned. Chipotle in our eyes has done everything they need to do to gain customer confidence and make the overall brand trusted again. Because Chipotle has laid the groundwork with 2,400 locations and not a single dollar of debt; they need to and have been putting millions of dollars into food safety. It has invested in its food suppliers to help it grow safer foods along with investing in its restaurants by educating employees.

At the high of Chipotle’s stock, they were one of the only restaurants in the healthy fast food business. Now, in order to reach their previous sales and profitability, Chipotle will have to compete with the numerous other restaurants that have emerged in the same category. This being said, there may also be more demand for healthy fast food than ever before.

Our Point of View:

Chipotle was wildly popular when it first came out, with lines out the door in certain locations. When the news regarding the sanitary issues came out, we saw many people turn away from Chipotle. Despite the decrease in sales, we haven’t seen a decline in the food quality. We always thought that at some point these customers would slowly return as the news blew over. On a smaller scale, from looking at our friends and family we have seen them beginning to venture back into being a Chipotle consumer. Recently, Chipotle released a 0.9% increase in same-store sales, which could just be the beginning.  Maintaining the high-quality food, opening new stores, and spending millions on food safety, is why we believe that Chipotle may be able to both regain and accumulate new customers, returning themselves to their prior sales and brand image.

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

Investing Strategies For Teens

Investing is hard enough, but being young and inexperienced can make it even harder. Understanding all the different statistics of a stock can take a lot of time and studying. Although these statistics are incredibly important, understanding the companies you are investing in and how they plan to make money is equally important. Investing as a teen is not easy, but if you use our strategies below, it will help you understand what companies you need to be looking at to give yourself the best chance of success.  

As a young person, do you have any advantages over other investors?

Most young people think that investing is for people who work on wall street and study stocks all day. With this image in mind, many teenagers become discouraged from investing as they believe they can’t compete against these analysts. However, although wall street analysts may know how to study PE ratios and market caps better than teenagers, they don’t have the same views as us. In other words, a wall street analyst isn’t in a school all day watching what trends come in and out of the school. That is where you will find the biggest advantage if you can recognize what is becoming popular before the street does, you will have a huge leg up on even the biggest firms. Another advantage of our viewpoint is analyzing what is going on within certain platforms or applications that are mainly used by the younger generations. For example, in our Snapchat article (https://youthstockperspective.com/2018/02/23/snapchat-update-help-sales/) we recognized that the application has changed in a way that will present more ads on the site. We didn’t do this by listening to CNBC or listening to a Snapchat analyst, we just simply used our observations, beliefs, and trends that we saw regarding Snapchat. While some of the ideas that we proposed in the Snapchat article may or may not be correct, the analysis does a great job representing the type of competitive advantage that we described above.

What Type of Companies to look at when Investing?

The best stocks to look in to are the ones that create products that similarly overlap with your interests and knowledge. It is much easier to understand and apply your opinion on a company that produces products that you truly understand and believe in. Also, another strategy to find stocks is to use the common trends that you see on a day to day basis. Once you have acknowledged some of these trends, you need to ask yourself, “how does this trend affect other products in its realm”. then go and find the companies that could be hurt or helped by the trend and invest accordingly.

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

Is Fortnite’s HUGE Success Hurting Activision? Could It Help It In The Long Run?

Will Activision have a surprising next quarter? Will it continue its long uphill trend or will their next quarter earnings falter?

For countless years, Activision has dominated the gaming industry, as its stock has continued to break records and push higher. Nothing has been able to halt Activision’s rapid growth, however it may have just met its match: Fortnite.

Fortnite has taken the world by surprise and has dominated the gaming industry. Fortnite is a multiplayer game in which players can team up with friends to work as a team to become the sole survivors out of 100 starting players. The game has not only captivated the gaming community, but has also attracted many who weren’t involved in gaming before.  

As of January 15, 2018, Fortnite recorded 40+ million users. This is an incredible feat since they just released the game on July 25, 2017. How did they do it? First, they created a great game that people enjoy playing. But what separates Fortnite from most great games is that it’s free. This raises the question, are zero dollar entry level games the wave of the future? Will we see other games shift their revenue streams to capitalize on in game purchases similar to the Fortnite model. Additionally, why would someone pay 40 dollars to buy the new Black Ops (one of Activision’s top selling games) when companies are creating great games for free.

How will Activision be affected by Fortnite in the short term?

Fortnite’s exponential growth in popularity and traction may have a negative impact on Activision in the short term. Captivating much of the gaming community, Fortnite may hamper the sales of Activision as many will be reluctant to spend money on paid games when they can both play for free and play with their friends on Fortnite.

Are there any positives for Activision in regards to Fortnite?

Fortnite may be a negative for Activision in the short term, however, there could be possible positives to look for in the long term. From personal experiences, we have seen many people that weren’t into gaming before venture into the industry because of Fortnite. What percent of Fortnite’s 40+ million users are new gamers is unknown. Activision could turn Fortnite’s wild success into a long term positive by working to captivate the new market share of gamers created by Fortnite. As Fortnite’s popularity may fade, Activision has proven to be a strong company in the gaming realm throughout the years. If this happens, Activision has the potential to capture the new market share by selling games to these people who hadn’t previously bought games.

Will Fortnite impact Activision in the short and or long term? Or will it have no effect at all?

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

Could the Most Hated Snapchat Update Actually Boost the Companies Sales?

Recently, Snapchat is under fire as the response to their update has been anything but positive. With all the negative user reviews, one might  think that Snap would consider retracing its steps and return to its old platform. However, the company has shown no signs of this retraction as Ceo and Founder Evan Spiegel said, “We’re excited about what we’re seeing so far,” and continues stating “The best part is that even some of the complaints we’re seeing reinforce the philosophy [behind the design].” As you can clearly see, he completely disregarded the hate the update has been receiving and the 1.2 million people that have signed the petition to change Snapchat back to its prior form.

It leaves people asking the question, “Why does Snap keep the new update if no one likes it?”

The answer to this question: revenue.

Although Snapchat currently has 187 million daily users, it is and has been losing money for years.

Snapchat’s stock has finally started to rally as it posted record breaking fourth quarter earnings on February 6, 2018, of 285,693 million dollars, however, the company still lost 28 cents per share or 159 million dollars. Despite the hate regarding the new update, the update itself looks like it could continue the uptrend in Snap’s sales.

A lot of people have been outraged with the way Snapchat’s signature story feature is now positioned on the left side of the app which makes it much harder to rewatch stories. Personally, we don’t like it either, but will it make us and our friends stop using the app? No! The reason being is our streaks are way too valuable to throw away because of an update.

The new update now leads the consumer to the right side of the app, where the stories used to be. This whole side of the app is now dedicated to the discover section. This is where Snapchat makes most of their revenue, as there is a lot of sponsored content from companies, and many ads in between the content. Additionally, a slight but important new feature to the app is that when a particular story or headline is over, it doesn’t take you back to to the displayed section of news, instead, it goes right to the next popular story, headline, celebrity sighting, or sporting event, keeping the user engaged, and more importantly presenting them with more ads.

How will Snapchat’s revenue be affected by the new update?

We believe the new Snapchat update was designed as a way to increase ad revenue. While increasing ad revenue, this new update has received an echoing negative response from many Snapchat users. Will this lead to a significant drop in Snapchat’s huge daily user base? If so, will the new revenue model in the update make up for the lost users?

Let us know your thoughts on this bold move from Snap.

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.