Snapchat: A Glimmer of Hope Despite Setbacks

The social media giant Snap, known for its platform Snapchat, has suffered a dramatic decline of 85 percent since its peak during the tech boom of 2021. However, unlike some competitors, Snap has not experienced a significant recovery and has struggled with growth challenges compared to industry giants like Meta Platforms. Fortunately, Snap's recent financial reports for the third quarter of 2024 show positive signs. Revenues are growing and losses are shrinking. Notably, one of the company's key operational metrics is showing accelerated growth, indicating a promising future outlook. Despite these advancements, Snap's stock remains at a historical low compared to valuations since its IPO in 2017—a potential buying opportunity. Snap's creative innovation approach is proving effective, particularly in adapting to difficulties following Apple's privacy changes in 2021. The company invested heavily in developing its advertising platform and attributes its success to models like the 7/0 optimization model. This optimizes ad campaigns over a seven-day learning process without relying on past spending or results. The efficiency improvements are remarkable: in the third quarter, advertisers saw a 27 percent reduction in cost per purchase compared to previous models. In addition to the advertising platform, Snap has seen impressively high user activity with its AI chatbot "My AI," which provides users with solutions to a variety of questions. The number of messages sent to "My AI" tripled within one quarter. Furthermore, the company is promoting content creation with new AI and machine learning tools, making the platform more attractive for both users and advertisers.