Snap Inc.’s shares are up more than 20% in the past week as the company tries to move Snapchat beyond messaging.
Shares of Snap
gained 5.9% on Wednesday according to a report by The Information explained the company’s plans for new e-commerce connections on the Snapchat app. The stock is up 21% in the last five trading sessions as the company has continued its efforts to find new uses for its popular mobile app over the past few months.
According to a Wednesday report, Snap acquired the startup behind Screenshop, an app that allows people to identify and buy items they see in photos. Screenshop’s technology could help Snap with its plans to provide users with shopping recommendations based on their saved photos, an initiative the company reportedly plans to discuss at its developer conference in May.
A Snap spokesperson declined to comment on the company’s e-commerce ambitions or the purchase of Screenshop.
Snap has tried to differentiate its app and move users to features that go beyond messaging. This is a Snapchat staple, but a feature with somewhat limited sales potential.
The company has sought acquisitions to expand its capabilities. Pick up Fit Analytics earlier this yearThis gives Snap access to technology that can help people determine the correct size of clothing when shopping online. Grab it also bought Ariel AI, which offered augmented reality tools that should help, among other things, to enable “experimental retail”.
“We’re investing in building new experiences for specific industries where we believe AR can dramatically improve the customer journey and add value to businesses,” said Peter Sellis, Snap’s senior product director, at the company’s Investor Day presentation in February . The company planned to start shopping.
See more: Snap’s big sales ambitions are cheering
E-commerce is an increasingly popular street for social media companies like Facebook Inc.
and Pinterest Inc.
Snap’s plans, as outlined in The Information’s report, suggest that the company may want to integrate online shopping into an existing Snapchat feature: the Memories tool that people use to save photos and videos.
Snap was lauded Tuesday for its other efforts to move users to more revenue-generating roles, such as Atlantic Equities analyst James Cordwell improved the share from neutral to overweight. He pointed to the dynamism of the original Snap shows and the Spotlight section, which has viral, user-generated content similar to what is on TikTok or Instagram’s Reels.
The traction for these newer areas of Snapchat, combined with Snap’s pipeline of promotional products, could help the company achieve average revenue per user that is closer to what Facebook and Twitter Inc.
see after Cordwell.
Snap shares rose 400% over the past 12 months as the S&P 500
has increased by 53%.