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The Snapchat Spotlight feature has been kickstarted by paying content creators.
Snap Inc (NYSE: SNAP) stock closed yesterday trading at $45.26, 2.19% up, and are now up approximately 1.64% during Tuesday’s pre-market. The spike in Snap stock price is attributed to news that the company has launched a TikTok-like feed dubbed Spotlight within the Snapchat app.
Snap stock has significantly benefited from the ongoing coronavirus pandemic as more people remain indoors thus having increased online activities. According to the market analysis data provided by MarketWatch, snap stocks have rallied approximately 192.76% in the last one years. Additionally, snap stocks have jumped approximately 177.16%, 114.30%, 8.90%, and 15.25% in the last eleven months, three months, one month and five days respectively.
The positive performance is expected to continue in the coming quarters as the reported coronavirus figures indicated a possible spike before a possible vaccine or drug is approved for mass use.
Snap Inc has a market valuation of $65.99 billion with 1.23 billion outstanding shares. In the past 52 weeks, snap shares have ranged between $7.89 and $47.27. Notably, having been rated 39 times previously, Snap stock received an average of Over rating.
As global social media platforms compete ruthlessly to either maintain a huge audience or win more markets, different companies are working on how to attract more organic active users to their platform. The notable Snap competitors are Chinese tech companies that have attracted a huge global audience in Asia and overseas. As a result, different jurisdictions are setting up laws to govern international online services, particularly in Europe, United States and China.
Previously, the United States through the outgoing President Donald Trump signed orders to restrict TikTok operations in the country. Although a common ground was met between the two antagonistic nations, the initial Cold War still puts most tech companies under the pressure.
Snapchat’s Spotlight that Pushes Snap Stock Higher
According to news outlet TechCrunch, Spotlight is a new place where Snapchat users can watch short and entertaining videos in a vertically scrollable, TikTok feed.
Apparently, the snap spotlight feature has been kickstarted by paying content creators. The incentive program is meant to attract more customers to the platform.
The new Snapchat feature is designed in a way that it will only work to surface the most engaging Snaps to display to each user on a personalized basis. Notable factors will be used to implement the feature, whereby it will rank the Snaps in the news feed using a combination of factors, like how many other people found a particular Snap interesting, how long people spent watching it, if it was favorited or shared with friends and more.
If successful, the new feature can bolster Snap stock in the future.