SNAPCHAT – How to build a digital empire on disappearing photos

In today’s Strifor review, we’ll talk about Snap Inc. – the company that gave the world Snapchat. The application that changed the approach to communication. And not only through its social network, but also by influencing its competitors. What started as an idea of students, turned into one of the most recognizable technology companies in the world. Let’s talk about Snap Inc.’s journey from startup to a leader in augmented reality, its products, finances, and place in the market.

History of the company

Snap Inc. was founded in 2011 by Evan Spiegel, Bobby Murphy, and Reggie Brown. It was originally called Picaboo, but a few months later it got a new name – Snapchat. The app’s main idea – messages and photos that disappear after a short time – immediately piqued users’ interest. In 2024, you might think that there is nothing special about this feature, as it is used in most messengers and social networks we use. However, it was Snapchat that introduced it first.

By 2013, the company had already become popular among students. In the same year, Facebook offered to buy Snapchat for $3 billion, but Evan Spiegel refused, believing in the prospects of the project.

In 2016, the company was renamed Snap Inc. to emphasize its development beyond a single app. In 2017, Snap had an IPO, becoming one of the most talked about technology companies.

Financial Performance

Snap Inc. had a volatile financial performance in the early stages of its growth.

• IPO in 2017: Snap shares floated at $17 and the company’s capitalization was $24 billion. The company raised $3.4 billion, becoming one of the largest tech IPOs of the decade. However, the stock was subject to heavy volatility after the offering due to investor doubts about long-term earnings
• 2020: for the first time since its founding, the company posted stable revenue growth

Snap’s main revenue comes from advertising integrated into the app, especially with the help of augmented reality.

Products and Innovation

Snap Inc. remains at the forefront of augmented reality (AR) technology, which sets it apart from its competitors:

• Snapchat: the company’s main app, popular with a younger audience. It allows you to share disappearing messages, post Stories, and use filters and effects
• AR filters: Snap was the first to bring augmented reality into everyday use with filters and lenses
• Spectacles: smart glasses that let you take videos and photos to integrate with Snapchat
• Snap Map: a map where users can share their location and follow events

Snap is actively developing its AR business, offering advertisers new formats to interact with users.

Key points in the market

Snap Inc. is focused on retaining its young audience, which helps it remain competitive even with giants like Instagram and TikTok. Despite heavy competitive pressure, Snapchat remains unique with its innovations in augmented reality and unlikeable interaction format

Major deals:

• In 2020, Snap Inc. entered into a massive agreement with major advertisers to develop AR campaigns, helping to significantly increase ad revenue
• In 2022, the company announced partnerships with Nike and Disney to offer unique AR filters and lenses to users

These initiatives have helped Snap Inc. retain its users and unlock new revenue streams. But despite its achievements, Snap Inc. faces challenges:

• Competition: TikTok and Instagram continue to grow their audiences, forcing Snap to constantly innovate.
• Financial vulnerability: The company has yet to achieve sustainable profitability.
• Technical limitations: AR products are expensive to develop and maintain.

To summarize

Snap Inc. – is more than just a company. It has become a symbol of innovation and adaptation in the face of fierce competition. From a student project to a major player in the technology market, Snap continues to inspire with its commitment to innovation.

Its successes in augmented reality, unconventional approaches to advertising and unique interactions with users have made the company one of the brightest in its sector. Despite the challenges, Snap Inc. remains a significant figure in the global marketplace, setting trends for the future of digital communication and technology.

You can become an investor in SFD on Snap Inc. and other major global companies with Strifor broker. We work with clients using MetaTrader 5 (MT5) trading platform from MetaQuotes, which allows not only to quickly conclude transactions, but also to analyze the movement of asset prices in detail. Also Strifor regularly offers favorable promotions, additional amounts (bonuses) on deposit and interest (bonuses) on the balance, where you can get up to 18% of the amount on the balance. Join Strifor, we always pay.

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