Snap SNAP is enhancing its camera features with the recently introduced dual camera on Snapchat for iOS users. The dual camera can capture multiple perspectives and themes simultaneously.
This feature offers four layouts, namely horizontal, vertical, picture-in-picture and cutout. It also allows Snapchat users to add creative tools like music, stickers and lenses.
The horizontal layout divides the screen into two parts from the horizontal center with the upper one capturing the rear view and the lower one capturing the front view or vice-versa.
The vertical layout divides the screen into two parts again but from the vertical center with the left side capturing the rear view and the right side capturing the front view or vice-versa.
The picture-in-picture layout shows the front (rear) view in a circular form which is pasted on top of the rear (front) view camera, while the cutout layout allows users to erase the background of the front image and paste it on the rear-view image.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snapchat Gaining Traction Among Millennials & Gen Z
Snapchat has been one of the trendiest social media applications among millennials & Gen Z, driven by its offerings like disappearing messages, AR lenses and filters.
Snapchat reaches 75% of 13-34 year-olds in the United States, making it a larger platform than Meta Platform’s META Facebook and Instagram as well as Twitter TWTR.
However, Snapchat is facing stiff competition from Meta Platform’s Instagram, which has already announced the dual camera feature on its platform a few weeks back.
Nevertheless, the latest camera enhancements are expected to boost user engagement as well as improve Snap’s competitive prowess.
The company is also benefiting from the strong adoption of its premium subscription service Snapchat+, which offers priority story replies to snap stars, new backgrounds and customized app icons. Snapchat+, which is available in 25 countries, has gained more than one million subscribers in just six weeks.
Snap has also been investing heavily in its augmented reality (AR) technology. It recently submitted research papers, briefing how the AR will convert simple photos and videos into digitalized assets that can be moved to any environment.
This feature will remove the need for images to be photographed and rendered in a physical studio and also allows the AR creators to create millions of easily fabricated digital assets.
In July end, Snap introduced Ghost Phone, a thrilling AR game built using Lens Studio and web-first game engine, Playcanvas. The game uses surface recognition and world-scan technology to seamlessly weave AR ghosts into the players’ real-world environment, prompting Snapchatters to collect phantom energy.
What Awaits Snap in the Rest of 2022?
Snap shares have underperformed the Zacks Computer & Technology sector as well as its peers Meta Platform and Twitter year to date.
While Snap shares have dropped 78.1% year to date, Meta Platforms and Twitter declined 52.7% and 7.3% over the same time frame.
Apart from stiff competition, Snap has been facing headwinds related to declining advertiser spending on the backdrop of supply-chain disruptions, labor shortages, and rising costs amid record inflation.
However, Snap’s popularity among Millennials and Gen Z remained strong. In the second quarter, daily active users (DAU) were 347 million, up 18.4% year over year. Snap added 54 million DAU on a year-over-year basis.
Total time spent watching Spotlight content grew 59% year over year. The daily average number of Snapchatters aged 25 and older, engaging with shows and publisher content, increased more than 40% year over year.
Zacks Rank & A Key Stock to Consider
Snap has a Zacks Rank #3 (Hold), currently.
A better-ranked stock in the Computer & Technology sector is Airbnb ABNB, with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Airbnb shares are down 31.8% on a year-to-date basis.
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