CIG News – Snapchat's Stock Snaps Back: The Street Debates How To React. News provided by Benzinga Tech, The tech sector is the category of the markets relating to the research & development and/or distribution of technological based services as well as goods.
Snap's total addressable market represents a top concern for investors to “worry about most,” Needham analyst Laura Martin wrote in a note. Management said the platform reaches 90% of 13- to 25-year-olds and 75% of 13- to 34-year-olds in the United States, which suggests a saturation point.
Positives And Negatives
Snap's report includes a few positive takeaways and negative read-outs, UBS analyst Eric Sheridan wrote in a note.
On the positive side: daily active user growth of 8 million beat estimates and rose in each region and platform, the company has a long-term opportunity to close the average revenue per user (ARPU) gap versus rivals and management discussed favorably its ongoing momentum in the advertising business.
On the other hand: North American ad revenue missed versus expectations, rest of the world (ROW) ad revenue also missed expectations and the midpoint of first quarter revenue guidance came in slightly below Street's expectations.
Snapchat's Improving Engagement
Instinet analyst Mark Kelley said that from a user …
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