Snap has seen its stock surge more than 180 percent since December — thanks to teenagers.
When it comes to augmented reality, Pivotal Research Group Analyst Michael Levine said there are “increasing signs of momentum in the business on multiple fronts,” according to Bloomberg. In fact, the equity research firm upgraded Snap to buy from hold on Thursday (June 6), as well as raised its price target to $17.25 per share from $13.25.
“There is [still] a healthy amount of remaining skepticism about the business among investors,” Levine noted, but “a turn in usage and revenues could translate into a meaningful re-rating higher.”
Snap has spent the last year developing teen-focused features. In April, the company launched a games platform, and new augmented reality features that enable users to add graphics to their hands, feet or other body parts. There are also plans for a gender-swap lens so that men can look like women and women can look like men.
“The latest launch of lenses is among some of the most impressive product innovation we have seen in some time from the company,” said Levine. “This, in our opinion, constitutes real innovation in augmented reality.”
This week, it was revealed that the company is rolling out new tools to enable select accounts to operate a store within Snapchat.
Snapchat users will reportedly be able to access the Shopify-powered stores by visiting the account page of a brand. Starting this week, Snap will enable users to access shops from Kylie Jenner (Kylie Cosmetics), Kim Kardashian (KKW Beauty), Shay Mitchell (Béis), Spencer Pratt (Pratt Daddy Crystals) and Bhad Bhabie (BHADgoods). The tools will be available to more accounts in the next few weeks, and the program will be expanded to publishers at some point this year.