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Although it is not directly clear the purpose of the Voca.ai acquisition, the deal will help Snap diversify its revenue collection.
Snap Inc (NYSE: SNAP) stock has popped 0.36% during Wednesday’s after-hours to trade around $38.60. SNAP shares closed yesterday trading at $38.46, 0.21% down. Now Snap stock is 1.79% up in the pre-market. The spike is being attributed to news that the Snap company is acquiring Voca.ai, an artificial intelligence-based voice assistant for consumers. According to news outlet TechCrunch, Snap intends to part away with $70 million based on a person with inside knowledge of the company.
The American camera and social media company has enjoyed a wide reception especially during the height of the coronavirus pandemic.
According to the market analysis provided by MarketWatch, Snap shares have rallied 167% in the past one year. In addition, the shares have jumped 135.52% year to date, and have managed to add over 75% in the last three months. However, they have dropped approximately 7.44% in the last five days despite being up around 37.06% in the last one month.
Notably, after 39 credible Wall Street experts critically analyzed Snap shares, they have an average of Over rating.
The company has a market valuation of $57.42 billion with 1.23 billion outstanding shares. In the past 52-weeks, Snap shares have ranged between $7.89 and $45.60.
Snap and Voca.ai
As American tech companies face fierce competition from overseas companies especially from China, Snap company is seeking to secure its future for its shareholders in the unpredictable market.
Snap is reported to have 249 million active daily users, hence top tech companies in the world. With the level of market dynamics especially fueled by the ongoing coronavirus pandemic, Snap acquiring a new entity will bolster its stocks future prospects.
Voca.ai is an Israeli founded startup with offices in New York and has a team of 40 members. In the past, the startup has raised tremendous capital through private funding. Whereby in 2019 it raised $6 million from investors including American Express, lool ventures and Flint Capital. Apparently, Voca.ai reported that as of October 2019 it was processing over 2 million calls/conversations per month. Some of its customers include Amdocs, FirstClass Capital, Toshiba, and Boost Health Insurance.
Although it is not directly clear the purpose of the Voca.ai acquisition, the deal will help Snap diversify its revenue collection. During the latest quarterly earnings report, Snap reported a 52% year over year spike in revenue to $679 million.
In addition, its operating cash flow improved by $21 million to $(55) million in Q3 2020, compared to the prior year.