Snap Inc. (SNAP - Free Report) recently announced the appointment of Kristen O’Hara as the vice president of U.S. global business solutions. O’Hara worked at Time Warner, now known as WarnerMedia, as chief marketing officer of Global Media.
The addition of O’Hara to Snap’s talent pool is expected to aid the company in helping advertisers better strategize campaigns. With around 16 years of experience in the same domain, O’Hara will commence her role in September and will be reporting to Snap’s chief strategy officer, Imran Khan.
The management change is expected to boost advertisement revenues as O’Hara’s primary focus will be on the campaigns on the platform.
This, in turn, will boost share price of the struggling company. Snap stock has lost 24.2% year to date, substantially underperforming the 27.3% rally of the industry it belongs to.
Factors Influencing Snap
In second-quarter 2018, Snap’s advertising revenues jumped 48% year over year to $260 million, primarily driven by solid traction in Snap’s global online sales business (which includes SMBs and sales partners) and strong growth in international countries.
The company has been focusing on new features. Snap recently introduced Group Video Chat that allows users to video chat with up to 16 friends at a time. The company also introduced Lens Explorer.
Moreover, the company launched Snappables, new Lenses for sharing augmented reality (AR) experiences with one or multiple friends. Users can control Snappables using touch, motion, and facial expressions.
Snap Kit was launched during the second quarter to help developers build products. The company also inked partnerships with Pandora (P - Free Report) and Tinder to share features on the platforms.
Additionally, the company is reportedly working with e-commerce giant Amazon (AMZN - Free Report) to introduce Visual Search, a camera-powered search engine per TechCrunch.
However, Snap’s user base declined sequentially in the second quarter. Management attributed the decline to the redesign of the application. The decline is a concern as it makes the platform less attractive to advertisers. Moreover, increasing competition from Facebook’s (FB - Free Report) Instagram continues to negatively impact user base growth for this Zacks Rank #3 (Hold) stock.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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