Bloomberg predicts Snap Inc. to witness an increase in the number of daily active users, based on the data analyzed regarding downloads for the company’s app Snapchat. The data shows that it is highly likely that the recent boost in user engagement could continue.
A “relatively stronger DAU (daily active user) growth” was observed for Snapchat as compared to other social media platforms, according to SimilarWeb’s August data. As stated by the Wall Street firm, Snapchat’s quarter-to-date growth among Android devices was 3.2%, beating Pinterest’s 2% growth and Facebook and Instagram’s 0.5% increase. What’s impressive about these numbers is that the user bases of Facebook and Instagram are quite larger as compared to Snapchat’s.
Snap recorded 203 million daily active users in its second quarter. The number was 190 million in the first quarter and 188 million in the second quarter of last year. If Bloomberg MODL estimates are to be trusted, the number of daily active users will increase to 205.8 million by the end of the third quarter.
Hao Yan (Citi analyst) writes that although the correlation of downloads to daily active user growth isn’t fully perfect yet, there are “strong upward trends” observed in the download activities so far in 2019. This relates to the positive SNAP DAU recovery in the last few quarters. It should also be noted that Citi has an $18 price target on Snap.
According to Citi, if the activity trends observed in the last two months continue in September, the downside risk on 3Q DAU outlook could be more contained against what was proposed by the recent market reaction.
Bank of America projected earlier this week that app downloads so far in the third quarter were up 23% from the same time last year. This boost can be attributed to the humongous success of Snapchat’s “face swap” photo filters. What’s concerning however, is that the recorded downloads were down 18% from the last quarter, striking fears that the boost wasn’t permanent.
BofA comments played a part in some fashion in the two-day drop of almost 10% in Snap’s shares. A growth was then once again observed on Wednesday. The stock has increased three-folds against a December low.
Photo: Daniel Acker/Bloomberg via Getty Images
Read next: Snapchat Is Pushing AR Further with New Templates and Lens Studio Update
A “relatively stronger DAU (daily active user) growth” was observed for Snapchat as compared to other social media platforms, according to SimilarWeb’s August data. As stated by the Wall Street firm, Snapchat’s quarter-to-date growth among Android devices was 3.2%, beating Pinterest’s 2% growth and Facebook and Instagram’s 0.5% increase. What’s impressive about these numbers is that the user bases of Facebook and Instagram are quite larger as compared to Snapchat’s.
Snap recorded 203 million daily active users in its second quarter. The number was 190 million in the first quarter and 188 million in the second quarter of last year. If Bloomberg MODL estimates are to be trusted, the number of daily active users will increase to 205.8 million by the end of the third quarter.
Hao Yan (Citi analyst) writes that although the correlation of downloads to daily active user growth isn’t fully perfect yet, there are “strong upward trends” observed in the download activities so far in 2019. This relates to the positive SNAP DAU recovery in the last few quarters. It should also be noted that Citi has an $18 price target on Snap.
According to Citi, if the activity trends observed in the last two months continue in September, the downside risk on 3Q DAU outlook could be more contained against what was proposed by the recent market reaction.
Bank of America projected earlier this week that app downloads so far in the third quarter were up 23% from the same time last year. This boost can be attributed to the humongous success of Snapchat’s “face swap” photo filters. What’s concerning however, is that the recorded downloads were down 18% from the last quarter, striking fears that the boost wasn’t permanent.
BofA comments played a part in some fashion in the two-day drop of almost 10% in Snap’s shares. A growth was then once again observed on Wednesday. The stock has increased three-folds against a December low.
Photo: Daniel Acker/Bloomberg via Getty Images
Read next: Snapchat Is Pushing AR Further with New Templates and Lens Studio Update
