Snap Inc. Share Price Explained: SNAP Stock Trading

Snap Inc., is the camera company that owns Snapchat — the 9th most popular social media platform in 2024, claiming over 800 million monthly active users.

This article explores Snap's business segments, key developments, and how to trade SNAP share price movement via SNAP share CFDs.

Main Points:

• Snap Inc., a leading camera technology company, is the parent company of Snapchat and other key subsidiaries.
• The company operates across three primary segments, with most of its revenue generated from advertising.
• Founded in 2009, Snap Inc. (SNAP) became a publicly traded company on the NASDAQ stock exchange in 2019.
• Shares of Snap Inc. are available for trading through contracts for differences (CFDs) on Plus500.

What Is Snap Inc.?

Snap Inc. is a camera technology company that provides a visual messaging application to help people communicate through videos and image clips. Snap Inc. is headquartered in Santa Monica, California, and has a global footprint in North America, Europe, and various international regions.

Snapchat vs Snap Inc.

Snap Inc. is the parent company of Snapchat, a multimedia messaging app incorporated under Snap Inc. The app is best known for its disappearing messages and creative multimedia features like filters, lenses, and stories. Besides Snapchat, Snap Inc. has 19 other subsidiaries, including HAGS, KeyDB, Snap Yellow Accelerator, and NextMind. However, Snapchat is the most popular among younger demographics due to its unique and engaging communication style.

How Does Snap Inc. Make Money?

Snap Inc. operates primarily within the social media and technology space, with its core business segments focused on three main areas: advertising, augmented reality (AR), and hardware devices.

1. Advertising: Snap Inc. primarily earns its revenue through Snapchat's advertising products, such as:
   • Snap Ads: This allows advertisers to share media stories with additional features such as links to websites, app downloads, or long-form content.
   • Augmented Reality Ads: This enables brands to create interactive and engaging augmented reality experiences that resonate with Snapchat's user base. The bulk of Snap Inc.'s advertising revenue comes from the North American market, with the US being the largest contributor.
   
   
2. Augmented Reality (AR): Snap Inc. is a pioneer in social media AR. Snapchat's AR Lens function enables users to modify their physical appearance or environment digitally and distribute the results as images or videos on the platform.


3. Hardware Devices: Snap Inc. also offers hardware products like Spectacles and the Pixy drone. Spectacles are smart glasses with AR overlay that connect to Snapchat, allowing users to capture photos and videos from their perspective, while the Pixy drone is a mini drone that can capture images and videos autonomously, is not yet in offering as of August 2024.

The History and Key Development of Snap Inc.

On September 16, 2011, Snap Inc. was founded by Evan Spiegel and Bobby Murphy. The company originated from the relaunch of the photo-sharing app Picaboo, which was rebranded as Snapchat.

On September 24, 2016, Snapchat Inc. changed its corporate name to Snap Inc. This change was made to include its growing product line, such as Spectacles, as separate companies under the umbrella of Snap Inc.

Subsequent to the corporate name change, Snap Inc. held an initial public offering (IPO) in early March 2017. Its shares were listed on the New York Stock Exchange under the "SNAP: NYSE" ticker. The company achieved a remarkable market capitalisation of approximately $30 billion on its first trading day.

After its IPO, Snap Inc. attracted significant attention from industry giants. In August 2017, Google expressed interest in acquiring the company for a valuation of $30 billion, and Tencent (0700.hk) invested in Snap Inc. by acquiring a 12% non-voting minority equity stake in November of the same year.

Snap Inc. introduced its Camera on macOS and Microsoft (MSFT:NASDAQ) Windows computers in October 2018. This software application allows users to add Snapchat filters to video conferencing applications like Skype, Loom, YouTube, and Zoom.

Snap Inc. Financial and Stock Market Performance

Snap Inc.'s IPO was priced at $25 per share in March 2017. The stock declined to an all-time low of $4.82 on 21st December 2018 and rose to an all-time high of $83.34 on 24th September 2021.

In 2023, Snap Inc. declined by -14.62% and by −46.54% year-to-date in August 2024. Snap Inc. has a market capitalisation of $14.67 billion, outstanding shares of 1.39 billion, and a public float of 1.03 billion. The company also recorded a negative earnings per share (EPS) of -$4.87 in 2024.

Factors Affecting The Stock Performance of Snap Inc.

• Legislation: The social media industry is a target for legislation, particularly around data privacy. Social media companies like Snap Inc. can incur losses in case of a fine or requirement to comply with certain regional legislation.
• Innovation: Snap's initial product suite was a game-changer. However, the company has struggled to replicate this success, leading to a product lifecycle falling short of expectations. In the highly competitive social media landscape, new innovative features are known to drive stock value.
• News: From the high-profile lawsuit by a purported co-founder to the backlash over a major app redesign, such negative headlines have challenged Snap Inc. Positive or negative headlines about the company can impact investors' decisions about a company's stock.
• Competition: Snap Inc. faces stiff competition from established players like Microsoft, TikTok and META, and startups like Twitch. The growth of competitors in the social media industry can negatively affect Snap’s market share and valuation.
• Earnings Report: Investors may use a company’s earnings report to gauge a business’ health and financial performance. Therefore improving numbers may bolster Snap Inc. stock prices, whereas declining figures may negatively influence the stock prices.

How to Trade SNAP Share CFDs

Snap Inc. is traded on the New York Stock Exchange under the ticker symbol “SNAP” and its share CFDs are available for trading on Plus500 platforms.

Contracts for Differences (CFDs) allow traders to speculate on the price movement of Snap Inc. stock without owning the underlying shares. CFD trading involves taking a position on whether the stock price will rise or fall. If the price moves in the predicted direction, a trader can profit. Conversely, if the price moves against the position, a loss may occur. The profit or loss is then determined by the difference between the opening and closing CFD prices. CFDs are also leveraged, meaning both gains and losses get amplified.

Trading Hours for Snap Inc. (SNAP) Share CFDs

You can monitor the share price movement of Snap Inc. on the Plus500 platform. Snap Inc. share CFDs are also available for trading on the Plus500 WebTrader platform between Monday at 3:30 PM CET and Friday at 10:00 PM CET.

*Please note that trading platform hours may vary depending on the individual operator.

Steps to Buy and Sell Snap Share CFDs with Plus500

To trade Snap stock with Plus500, follow these steps:

1. Visit the Plus500 website and create a trading account.
2. Understand how CFD trading works, including leverage, margin, and potential risks. In addition, you should familiarise yourself with the terms and conditions of the platform before placing a trade.
3. Choose a suitable trading strategy (e.g., day trading, swing trading, long-term investing).
4. Search for "SNAP" in the Plus500 platform or browse the available instruments.
5. Analyse Snap Inc.'s stock performance using technical analysis and fundamental analysis.
6. Decide whether to buy (long position) or sell (short position) the Snap CFD.
7. Specify the desired order size, close-at-loss order and close-at-profit order.
8. Confirm your buy or sell order.

Conclusion

Snap Inc., Snapchat's parent company, is a key player in the social media and technology space. When evaluating trading opportunities with Snap Inc. shares, traders should monitor the economic calendar for the latest headlines and other key considerations, such as innovative advancements, earnings reports, and the competitive landscape within the social media industry.

If you are interested in the rising and falling prices of Snap Inc. shares, you can check out Snap Inc. share CFDs at Plus500.