Why Best Buy (BBY) is Poised to Beat Earnings Estimates Again
Snap SNAP recently upgraded the way its message deletion feature works on its Snapchat platform. The company introduced a “clear chats” feature that will enable users to delete sent messages in individual or group chats.
Per Business Insider, the clear chat option is applicable for text, stickers, audio messages or images and videos sent only from the Memories section.
We note that Snapchat’s popularity, especially with teens and millennials, can primarily be attributed to its ephemerality. Photos/videos and text sent to friends via Snapchat disappear after 24 hours for group chats and a month for individual messages.
Earlier, through the company’s Clear Conversation feature, users could delete chats only at their end while the messages were still visible to others.
Snap Inc. Price
Snap Inc. Price | Snap Inc. Quote
Focus on Boosting User Growth
Snap is putting its best foot forward to attract and retain users. The company is adding superior features to enhance user satisfaction by addressing their concerns.
Last month, Snap came up with Send and Request location feature that focuses on privacy control. As the name suggests, the feature enables Snapchatters to send or request current real time location that appears on the Snap Map or within the message thread with that person.
The company had earlier been criticized for its always-on location sharing Snap Map. The latest feature makes location sharing available for up to 8 hours and can be cancelled any moment.
Snap seems to have become more cautious in its approach following the upheaval created by the redesign of application. The redesign not only had an adverse impact on user growth but also on the company’s ad business.
We believe the addition of such features will help increase app usage by making users more comfortable with the application. By boosting user engagement, the company will be able to attract advertising dollars, which remains the mainstay of its revenues.
Zacks Rank & Stocks to Consider
Snap currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA, Micron Technology, Inc. MU and Twitter TWTR, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for NVIDIA, Micron and Twitter is projected to be 10.3%, 10% and 23.1%, respectively.
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