We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microsoft's AI Driven Sprinkles to Take on Snap's Snapchat
Read MoreHide Full Article
Reportedly, Microsoft Corporation (MSFT - Free Report) recently launched a mobile app targeting the youth called Sprinkles. It allows users to take pictures and add graphics or captions to them, similar to Snap’s (SNAP - Free Report) popular app Snapchat.
At present, the app is only compatible with Apple’s (AAPL - Free Report) iOS. Android or Windows based smartphones do not support the app.
We note that the development had no noticeable impact on Microsoft’s shares as they declined 0.26% on Wednesday. Further, we note that, shares of the company have underperformed the Zacks Computer – Software industry over the last one year. While the industry gained 21.7%, the stock registered growth of 20.4%.
The underperformance of the stock could be due to stiff competition in the cloud space and the PC market.
However, we expect the stock to rebound in the rest of 2017 fueled by the company’s initiatives in the “mobile first, cloud first” space.
Advantage Microsoft
Although Snapchat is the most dominant player in the photo app space at present, Microsoft could emerge as a formidable competitor with the introduction of Sprinkles. The app not only lets its users decorate photos with captions, stickers and emojis but also detects faces, age, emotion; discovers celebrity lookalikes and suggests captions leveraging Microsoft’s artificial intelligence (AI) and machine learning technology.
We note that competition in the photo and video sharing app space is intensifying with every passing day. For example, Facebook has introduced many Snapchat-like functionalities within its own apps. On the other hand, Apple introduced Clips last month, an app for creating short videos.
However, we believe that Microsoft with its AI technology is well equipped to take on the competition.
As per a Gartner report, of the 432 million smartphones that were sold worldwide in the last quarter, 81.7% had Android, 17.9% had iOS while just 0.3% ran the Windows platform.
By making the app just iOS compatible, Microsoft is losing out on a big market. Maybe it’s just a matter of time when it comes out with the Android and Windows enabled versions to gain better traction in the space.
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft's AI Driven Sprinkles to Take on Snap's Snapchat
Reportedly, Microsoft Corporation (MSFT - Free Report) recently launched a mobile app targeting the youth called Sprinkles. It allows users to take pictures and add graphics or captions to them, similar to Snap’s (SNAP - Free Report) popular app Snapchat.
At present, the app is only compatible with Apple’s (AAPL - Free Report) iOS. Android or Windows based smartphones do not support the app.
We note that the development had no noticeable impact on Microsoft’s shares as they declined 0.26% on Wednesday. Further, we note that, shares of the company have underperformed the Zacks Computer – Software industry over the last one year. While the industry gained 21.7%, the stock registered growth of 20.4%.
The underperformance of the stock could be due to stiff competition in the cloud space and the PC market.
However, we expect the stock to rebound in the rest of 2017 fueled by the company’s initiatives in the “mobile first, cloud first” space.
Advantage Microsoft
Although Snapchat is the most dominant player in the photo app space at present, Microsoft could emerge as a formidable competitor with the introduction of Sprinkles. The app not only lets its users decorate photos with captions, stickers and emojis but also detects faces, age, emotion; discovers celebrity lookalikes and suggests captions leveraging Microsoft’s artificial intelligence (AI) and machine learning technology.
We note that competition in the photo and video sharing app space is intensifying with every passing day. For example, Facebook has introduced many Snapchat-like functionalities within its own apps. On the other hand, Apple introduced Clips last month, an app for creating short videos.
However, we believe that Microsoft with its AI technology is well equipped to take on the competition.
As per a Gartner report, of the 432 million smartphones that were sold worldwide in the last quarter, 81.7% had Android, 17.9% had iOS while just 0.3% ran the Windows platform.
By making the app just iOS compatible, Microsoft is losing out on a big market. Maybe it’s just a matter of time when it comes out with the Android and Windows enabled versions to gain better traction in the space.
Zacks Rank
At present, Microsoft carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>