Strong Competition and Weak Monetization Pressure Snap’s Long-Term Growth Prospects
The article discusses how Snapchat's parent company, Snap, faces significant challenges to its long-term growth due to intense competition and its inability to effectively monetize its large user base. Despite having over 450 million daily active users, Snap's ad-targeting and user-engagement algorithms are deemed less potent compared to major rivals like Meta and TikTok. The report highlights that high-margin products such as Snapchat+ are crucial for improving platform monetization.
https://www.morningstar.com/company-reports/1424309-strong-competition-and-weak-monetization-pressure-snaps-long-term-growth-prospects